MINISTER of Aviation and Aerospace Development, Festus Keyamo, has explained that the N712.3 billion approved by President Bola Tinubu for the overhaul of the Murtala Muhammed International Airport (MMIA), Lagos, will not be funded through any foreign loan.
His clarification followed public concerns triggered by the approval and the debt implications after the Federal Executive Council (FEC) approved what the minister described as the largest aviation infrastructure upgrade in Nigeria’s recent history.
In a statement issued on Sunday, August 3, Keyamo explained that the entire project would be financed through the Renewed Hope Infrastructure Development Fund, a government initiative funded by savings from fuel subsidy removal.
On Thursday, July 31, Tinubu approved N712.3 billion for the comprehensive upgrade of the airport as part of the effort to revamp the aviation sector in the country under the Renewed Hope Infrastructure Development Fund.
According to the minister, the project represents the first complete overhaul of the old terminal building at Lagos airport since it was built.
“This is not a patchwork. We’re stripping the building down to its carcass and rebuilding with full mechanical, electrical, and plumbing works,” he said.
The report, which highlighted the involvement of the Chinese construction giant CCECC and the award of a N24.3 billion contract to expand the domestic wing apron, sparked public debate and fears of renewed debt exposure.
He also highlighted that the contract was awarded to CCECC, the Chinese company that previously handled the construction of Terminal 2 at the airport.
While noting that the project is expected to be completed in 22 months, the minister said that the project scope covers apron expansion, as well as the construction of access roads and bridges within the airport premises.
However, the approval of the amount raised public concerns about corruption and fears of renewed debt exposure.
In response, Keyamo, on Sunday, clarified that the funding of the project will not involve any new foreign loans.
“In all, Nigerians will be proud of what we are going to deliver. And take note, this will not be done by a loan from anywhere, but by the Renewed Hope infrastructure Development Fund, which is one of the gains made from the removal of subsidies,” he said.
According to the minister, Terminal One has become structurally degraded due to years of neglect and traffic levels that have long exceeded its intended capacity.
He said the government intends to completely strip down the aging terminal, removing even the roof and rebuilding a modern, smart facility that meets international standards and can handle increased passenger volumes.
“What we simply want to do is to strip down that building, including the entire roof (leaving only the carcass), then re-design/reconfigure it & build a brand-new airport for the nation to meet modern, international standards that can also cater for the increased traffic. Both wings D and E would be affected.
“As for the new Terminal (Two), we got approval to expand the building and the Apron (where aircraft park for boarding and disembarkation) to accommodate more aircraft, including wide-body aircraft. That is not all; we are constructing two new independent ring roads in and out of the airport (one for departure and one for arrival) and a bridge that will take travellers directly to the upper floor of Terminal Two Departure lounge, instead of lifting our luggage on the escalators when we are departing. It is a design error we intend to correct,” he added.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M