Minister Keyamo: Nigerian Airports Run at a Loss Without Private Sector Support

The minister addressed public concerns regarding the Enugu airport, clarifying that it is not being sold but rather concessioned to private investors.

The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that Nigerian airports operate at a financial loss in the absence of private sector participation. He emphasized that the Federal Government can no longer manage them profitably on its own.

Speaking at the launch of Enugu State’s indigenous airline, Enugu Air, on Monday, Minister Festus Keyamo stated that government-run airports in Nigeria are no longer viable for profit.

“No government in Nigeria can profitably run airports anymore,” he said. “We’re operating at a loss because we lack the efficiency and drive of the private sector. I’m stating this openly, and I make no apologies for it.”

Addressing public concerns surrounding the Enugu airport, the minister clarified that the facility is not being sold but concessioned to private investors.

“I’ve seen comments suggesting we are selling the Enugu airport—this is not true. It is being concessioned. The process has the full backing of Mr. President, the Federal Airports Authority of Nigeria (FAAN), the Ministry of Aviation, and the relevant National Assembly committees,” he added.

“We are currently in the process of handing over the Enugu airport to private investors who will revamp and fully operationalize the facility, including the cargo terminal,” he said.

Keyamo noted that the development of the cargo terminal would greatly enhance economic activities in the region.

“With this terminal, exports can now be processed directly from Enugu, creating jobs and economic opportunities for the people. I felt it was important to highlight that today.”

Addressing public concerns, the minister clarified that the airport is not being sold but concessioned to private investors.

“I’ve seen some claims suggesting that we’re selling the Enugu airport. That’s not true. It is being concessioned—an arrangement fully backed by the President, the Federal Airports Authority of Nigeria (FAAN), the Ministry of Aviation, and relevant committees of the National Assembly.”

He commended Governor Peter Mbah of Enugu State for taking bold and proactive steps to attract private sector investments into the airport, emphasizing that the governor was determined not to let bureaucracy hinder development.

“The governor approached me and said, ‘I want to bring in private sector investment to manage Enugu airport. I won’t sit around waiting for bureaucratic processes — development is moving too slowly,’” the minister recalled.

“I told him, ‘Why not wait and complete the airline project first?’ But he insisted, ‘No, I want the private sector to run this airport efficiently for the benefit of the people of Enugu State.’”

According to Keyamo, this decisive approach quickly drew the interest of several top-tier private firms with expertise in airport operations.

“Before we could say Jack, major private players—some of the top names in airport management—had come together. And as I speak, in the coming months and years, Enugu Airport will be completely transformed. The private sector is stepping in, and it’s all being driven by the governor’s vision.”

Speaking on the airline launch, the minister also disclosed that Governor Mbah was determined to make Enugu Air a reality.

“I told the governor that securing an Air Operator’s Certificate (AOC) for a new airline is a lengthy process. But he said he couldn’t afford to wait two years. Instead, he decided to partner with an existing operator that already had an AOC. I reached out to XEJet, and they agreed. And that’s how Enugu Air was born,” he explained.

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