FG’s N105bn aviation budget sparks debate amid stakeholder concerns

The Federal Government has proposed an increased allocation of N105.95 billion for the aviation sector in the 2025 budget, marking a significant rise from the N63.32 billion allocated in 2024. While this move suggests a renewed commitment to the industry, it has reignited concerns over spending priorities and policy alignment with global standards.

A contentious aspect of the budget is the proposed N4 billion refund to the Kebbi State Government for the construction of the Sir Ahmadu Bello International Airport, Birnin Kebbi. This decision counters longstanding advice from industry stakeholders, who have cautioned against reimbursing state governments for building airports deemed unviable.

Key highlights of the proposed aviation budget include: N5 billion for power and energy upgrades at Lagos and Abuja airports, N1.5 billion for internet services, N71.12 billion for the Ministry of Aviation.

Funding for agencies like the Nigerian Meteorological Agency (N9.82 billion), Nigerian College of Aviation Technology, Zaria (N7.98 billion), and the Nigerian Safety Investigation Bureau (N10.04 billion).

However, two major players in the sector the Nigeria Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN) received no direct allocation. These agencies operate on a cost-recovery model, with the Federal Government deducting 50 per cent of their internally generated revenue (IGR).

The deduction of IGR, which violates International Civil Aviation Organization (ICAO) recommendations, remains a divisive issue. ICAO advocates reinvesting IGR into infrastructure and safety improvements. Aviation unions have criticized the current policy, warning that it undermines the industry’s safety and growth prospects.

When asked about NCAA’s exclusion from the budget, the Director of Public Affairs and Consumer Protection at NCAA, Michael Achimugu, expressed uncertainty, stating:

“Well, I am not sure that the NCAA can be exempted from the budget, but I will further confirm from the DFA (director of finance and accounts).”

The increased budget allocation, though promising, raises critical questions about fiscal prudence and the strategic direction of Nigeria’s aviation industry. With safety concerns, unviable projects, and IGR deductions at the forefront, stakeholders are urging the government to prioritize sustainable investments aligned with global best practices.

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