Nigerian aviation experts have called the proposed N712 billion restoration of the Murtala Muhammed International Airport (MMIA), Terminal One, Lagos, “at quarter to go” and “ludicrous.”
Nigeria’s airport project may be among the priciest in the world, it was also disclosed.
The Federal Government has also been recommended by industry experts to either concession the airport or use public-private partnerships (PPP) instead of spending so much money on airport projects while other infrastructure in the nation is falling behind.
The administration was also tasked with elucidating the extent of the work and demonstrating greater transparency regarding the expense.
N712 billion was granted by the Federal Executive Council (FEC) in Abuja last Thursday for the complete modernization, upgrade, and rehabilitation of MMIA.
The clearance served as the centerpiece of the nation’s extensive aviation development plan, which is estimated to cost N900 billion.
In an interview with reporters, Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development, stated that the project, which was given to the China Civil Engineering Construction Corporation (CCECC), would include rebuilding the old terminal with new plumbing, electrical, and mechanical systems after tearing it down to its structural core.
The project would be carried out over a 22-month period, he added. “We have chosen to remove everything except the carcass and then perform the full mechanical and electrical (M&E) again,” he stated.
He emphasized that the administration was moving away from haphazard fixes and toward a thorough refurbishment of important aviation facilities.
The extension of Terminal Two, which includes building a new apron, access roads, bridges, and other related projects, was also approved by the FEC.
The Lagos airport project was the most significant single investment in Nigeria’s aviation industry, with a total cost of N712.26 billion when combined with the Terminal One project.
The N712 billion, or around $474.6 million at a N1,500 to $1 exchange rate, was incredibly costly in comparison to similar airport development projects in 2024 worldwide, according to GlobalData’s construction project database.
For example, the United States (US)’s Otay Mesa Metropolitan Airpark, being developed by the City of San Diego (COSD) and Brown Field International Business Park (BFIBP), is just $1 billion in cost.
Over 134 hectares of land, the project entails building aviation infrastructure and auxiliary non-aviation structures. Upon completion, the project is anticipated to generate $500 million in revenue annually for the area and provide 4,000 permanent jobs and 8,000 long-term construction jobs.
Additionally, a new airport in Romania, Henri Coanda International Airport, is being built for $1.04 billion.
With a projected capacity of 20 million passengers annually, the Bucharest Airports National Company (CNAB) is constructing a new modular passenger terminal at Romania’s main airport, which will lessen reliance on the current terminal, which can handle eight million people annually.
The project entails building a brand-new, 100,000 square meter passenger terminal. Each of the four rooms that make up the terminal can accommodate up to five million passengers annually. Additionally, it entails building a 650,000m2 aircraft parking platform, 56 new aircraft parking spaces, 25 boarding gates, 266,000m2 of new taxiways, 9,600 car parking spaces, a 5,000m2 business center, a 200-person hotel, and safety and security systems.
At Vaclav Havel Airport (PRG) in Prague, Czech Republic, the Czech Airports Authority (CAA) intends to invest $1.19 billion to build Terminal 2.
The project includes building a new parallel runway, a three-lane access bridge, retail stores, waiting areas, check-in desks, immigration counters, a cafe and restaurant, and Terminal 2 expansion to accommodate 21.2 million passengers annually.
The construction of a new arrival and departure lounge, a public space in front of the terminal building, the enlargement of aircraft stands, and the installation of security, safety, and elevator systems are also included. At a cost of $1.2 billion, Burbank Bob Hope Airport (BBHA), often known as Hollywood Burbank Airport, is building a 14-gate new terminal.
A new airport terminal will be built on 20 hectares of land as part of the project. The project entails building a two-story, 32,980-square-meter terminal with 14 airplane gates, access roads, and firefighting and aviation rescue stations.
For $1.26 billion, the Taiwanese Civil Aeronautics Administration (CAA) is developing a new terminal structure at Kaohsiung International Airport (KHH) in Taiwan.
Between the current domestic and international terminals, a new East Terminal will be built as part of the project’s first phase. Building a new West Terminal and renovating the current international terminal constitute phase two.
The Hajj and Umrah Terminals at King Abdulaziz International Airport (JED) in Jeddah, Saudi Arabia, are being expanded by the General Authority of Civil Aviation (GACA) for a total of $1.26 billion.
In order to complete the project, new arrival halls, a runway, access roads, load centers, utility networks, parking facilities, related facilities, and an automated people mover will be installed.
The two terminal buildings will increase the airport’s annual passenger capacity by 15 million. Additional projects include the $1.3 billion extension of Sacramento International Airport in the United States, the $3.3 billion expansion of Brisbane Airport in Australia, the $4.62 billion modernization of Viracopos International Airport in Brazil, and the $4.8 billion Dallas Fort Worth International Airport Terminal in the United States.
Additionally, the government was advised by aviation experts to use PPPs to construct a more efficient and sustainable infrastructure development model, which would propel the nation’s economic growth.
The Chief Executive Officer (CEO) of Centurion Aviation, Grp. Capt. John Ojikutu, stated that the project’s budget was excessive and a waste of limited resources.
The government might make concessions instead of spending so much money on the project, Ojikutu said, pointing out that none of the renovations were aeronautical.
He lamented the fact that, 21 years after the International Civil Aviation Organization (ICAO) found the majority of the open items during its 2004 audits, the country had failed to complete the periodic maintenance programs for the majority of the aeronautical services, including radar, navigational aids, runways, and taxiways.
According to Ojikutu, if Bi-Courtney Aviation Services Limited (BASL) is able to build the Murtala Muhammed Airport Two (MMA2) in Lagos from the ground up, then no non-aeronautical facility could be rehabilitated that could not be concessioned.
He noted that in 2018, a foreign business had bid $30 billion over 30 years for MMIA concessions at a yearly rate of N360 billion. He questioned why the Federal Government, led by former Aviation Minister Sen. Hadi Sirika, had not finished the deal. The government should refrain from investing in such infrastructure in the nation, Ojikutu added, claiming that such resources are “shared by political officeholders.”
It is a waste to spend N712 billion, or $460 million, to renovate a terminal, he declared. If the MMIA Terminal 2 in Abuja, Kano, and Enugu could be financed with a $500 million Chinese loan, the person suggesting this waste should provide specifics.
What I’ve observed over the past 20 years in Nigeria’s aviation growth is the needless expenditures made in the final quarter.
The terminal development ought to be put up for concession so that our agencies’ administrators can start making plans for building security walls in accordance with Annex 17 and airport perimeter fences in accordance with Annex 14 of the ICAO.
Aviation expert Capt. Mohammed Badamasi concurred with the government that the interior of the terminal building needed to be renovated, but he noted that a significant sum of money had been allocated for it.
He said that the majority of the funds allocated will be taken out of the taxpayer’s account.
Badamasi, like Ojikutu, advocated for concessions for the terminal and other airport terminals throughout the nation. “What needs to be done is to fix the conveyor belts, the air conditioning system, the restrooms, the floor tiles, and the fingers to serve until a concessionaire is available to take over from the government,” he continued.
The N712 billion is insufficient for comprehensive rehabilitation. Does $474 million, the USD equivalent, seem too little if N712 billion does?
This sum is equivalent to almost half a billion dollars. Instead, Merchant Express Cargo Airlines CEO Capt. Samuel Caulcrick urged the government to embrace the PPP plan.
He asserted that the PPP will improve the airport’s impact while also modernizing its infrastructure. He maintained that the government might improve infrastructure management and upkeep by collaborating with the private sector and benefiting from their resources, efficiency, and experience.
In order to guarantee that the enhanced infrastructure was handled efficiently, Badamasi emphasized that the private sector had a stake in producing high-quality outcomes and that the infusion of private cash could be transformed into performance bonds.
Even though the specifics of the N712 billion efforts were still being finalized, he stated that travelers and those planning to travel should have a smooth journey that incorporates a variety of transportation options, such as air-conditioned buses and light trains, inside the airport setting. In order to maximize the impact of its investments, he continued, “the government may reallocate the resources deposited by the consortium to other crucial areas of the economy, regardless of what is agreed upon as the private sector’s performance bond injected funds.”
“The performance bonds will provide the government with a guarantee by reducing risks related to infrastructure management.”
Although he questioned the cost, Alex Nwuba, vice president of the Aviation Safety Round Table Initiative (ASRTI), added that any terminal enhancement will enhance the passenger experience. However, Nwuba urged the government to release its methodology to the public.
The minister mentioned a significant demolition of the existing terminal because, after years of mending, it was a better long-term investment. It is imperative that he further elucidate the extent of the job,” he stated.
N712 billion Airport Renovation: Clearly Indicates Government Wickedness — LP
Festus Keyamo, the Minister of Aviation and Aerospace Development, recently announced that the Federal Government plans to spend an astounding N712 billion ($475 million) on the renovation of the Murtala Muhammed International Airport in Lagos. The Labour Party (LP) has blasted this announcement as evidence of government malfeasance against the people.
The “outrageous, insensitive” proposal is extremely concerning, according to LP’s statement on Monday, particularly given that the National Bureau of Statistics estimates that 133 million Nigerians, or 63% of the country’s population, are multidimensionally poor.
The party declared, “This is not just wicked; it is satanic and speaks to a gross disregard for the plight of the masses.” It further claimed that the APC-led government is putting luxury ahead of the well-being of its constituents.
Read Also: West African Leaders and Industry Experts to Meet in Lagos for Industrial Revolution Talks
It further lamented what it saw as the government’s lack of compassion in allocating savings from the elimination of fuel subsidies to the elite instead of improving the lot of other Nigerians.
Sen. Nenadi Usman, the party’s interim national chairman, received a statement signed by Senior Special Adviser for Media Ken Asogwa, which stated: “To take this lifeline away from the poor and use the money to build a luxury terminal that is only available to the wealthy is a new low in governmental wickedness.”
“Any pretense of empathy or good governance has been totally abandoned by the APC government. Why this kind of initiative, which has obvious commercial potential, could not be carried out under a public-private partnership (PPP) model is a mystery.
“What is even more shocking is the minister’s revelation that the so-called Renewed Hope Infrastructure Development Fund, which will be used to fund this project, is composed of savings from the elimination of fuel subsidies, which were the only significant advantage that the typical Nigerian had from our God-given fossil fuel resources,” he said.
According to the statement, “terminal buildings are revenue-generating investments around the world.” When the return on investment is self-sustaining, why not encourage private capital instead of wasting subsidy savings on an exclusive project that only serves a small portion of the population? We would like to know how many Nigerians who were denied the benefits of the subsidized era still travel by air today. Given that access to fundamental necessities like food, healthcare, and transportation has become a luxury, what need do they have for airport terminals? According to Asogwa, the administration’s well-documented budgetary irresponsibility means that the LP is not shocked.
He continued by denouncing the Lagos-Calabar coastal highway grant, calling it “a white elephant project estimated at N15 trillion (about $12 billion), costing taxpayers an inconceivable N4 billion per kilometer.”
It is obvious that this administration has misplaced priorities. Our research reveals multiple examples of brand-new, cutting-edge airports built from the ground up at significantly lower prices than $475 million throughout Africa, Asia, and Europe.
Therefore, how could this administration defend squandering so much tax money on a simple renovation? “We genuinely question what will shock Nigerians’ consciences if this doesn’t,” he said.
