Nigeria’s aviation sector will operate under tighter fiscal conditions in 2026 as the Federal Government cuts the budget of the Ministry of Aviation and Aerospace Development to ₦87.3 billion, down 23 percent from the ₦113.19 billion approved in the 2025 Appropriation Act.
Details of the 2026 Appropriation Bill show that capital expenditure remains the dominant component of the ministry’s spending, underscoring the government’s focus on completing critical infrastructure projects despite broader fiscal tightening.
The core ministry received an allocation of about ₦50.05 billion, comprising ₦1.35 billion for personnel costs, ₦745.7 million for overheads and ₦48.55 billion earmarked for capital projects. The structure reflects a deliberate shift toward infrastructure spending over recurrent expenditure.
Key aviation agencies also received allocations largely tilted toward capital projects. The Nigerian Airspace Management Agency (NAMA) was allocated ₦6.3 billion exclusively for capital expenditure, with no provision for personnel or overhead costs in the 2026 proposal.
The Nigerian Meteorological Agency (NiMet) received a total allocation of ₦11.84 billion, broken down into ₦9.15 billion for personnel, ₦393.7 million for overheads and ₦2.29 billion for capital projects. The Nigerian College of Aviation Technology (NCAT), Zaria, was allocated ₦11.28 billion, including ₦4.28 billion for personnel, ₦464.4 million for overheads and ₦6.53 billion for capital expenditure.
Similarly, the Nigerian Safety Investigation Bureau (NSIB) received about ₦7.24 billion, made up of ₦734.1 million for overheads and ₦6.51 billion for capital projects.
The 2026 allocation marks a reversal from recent years. While the ministry received ₦57.23 billion in 2024, its budget rose sharply to ₦113.19 billion in 2025, driven largely by ₦100.28 billion in capital expenditure. Under the 2026 proposal, capital allocations to the ministry and its agencies have been significantly reduced.
The budget cuts come as the Federal Government accelerates structural reforms in the aviation sector, particularly plans to end long-standing subsidies for non-profitable airports. In December 2025, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the government would stop financing airports that consume billions of naira monthly in diesel, maintenance and operating costs while generating minimal revenue.
Keyamo noted that Lagos airports account for about 63 percent of passenger traffic and a similar share of total airport revenues, forcing the government to divert earnings from major hubs such as Lagos, Abuja and Kano to sustain smaller airports with very low traffic volumes. He described the current model as unsustainable and a constraint on sector growth.
As part of a new reform roadmap, President Bola Tinubu has directed the ministry to concession non-profitable airports to private investors, with the aim of transforming them into aerotropolis hubs featuring hotels, conference centres, shopping complexes and other revenue-generating facilities.
“The government does not have the resources or the structure to build these revenue-generating facilities,” Keyamo said, adding that smaller airports are open to concession by both local and international investors.
He confirmed that Enugu Airport has already been concessioned, while Port Harcourt Airport is at an advanced stage of the process, with several other proposals currently under review.
