Nigeria’s aviation sector faces tighter fiscal conditions in 2026 as the federal government slashed total budgetary allocation to the Ministry of Aviation and Aerospace Development to N87.3 billion, representing a 23 percent decline from the N113.19 billion approved in the 2025 Appropriation Act.
Details of the 2026 Appropriation Bill obtained by BusinessDay show that capital expenditure still dominates the ministry’s spending profile, reflecting the government’s push to complete projects across the sector.
For the core ministry, total allocation stands at about N50.05 billion, made up of N1.35 billion for personnel, N745.7 million for overheads and N48.55 billion for capital projects. The allocation structure sees a deliberate tilt towards infrastructure spending amid broader fiscal tightening.
Key aviation agencies also receive allocations, with emphasis largely on capital funding rather than recurrent expenditure.
The Nigerian Airspace Management Agency (NAMA) was allocated N6.3 billion solely for capital projects, with no provision for personnel or overheads under the 2026 proposal.
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The Nigerian Meteorological Agency (NiMet) received a total allocation of N11.84 billion, comprising N9.15 billion for personnel, N393.7 million for overheads and N2.29 billion for capital expenditure.
Similarly, the Nigerian College of Aviation Technology (NCAT), Zaria, got N11.28 billion, broken down into N4.28 billion for personnel, N464.4 million for overheads and N6.53 billion for capital projects.
The Nigerian Safety Investigation Bureau (NSIB) was allocated about N7.24 billion, including N734.1 million for overheads and N6.51 billion for capital expenditure.
The 2026 allocation marks a notable reversal from recent years. In 2024, the aviation ministry received N57.23 billion, while the 2025 budget saw a sharp increase to N113.19 billion, driven largely by N100.28 billion for capital expenditure.
Under the 2026 proposal, capital allocation to the ministry and its agencies has been pared back significantly.
The budget cuts come as the government accelerates structural reforms in the aviation sector, particularly its plan to end decades of subsidies for loss-making airports.
In December 2025, Festus Keyamo, minister of Aviation and Aerospace Development, said the federal government would stop financing non-profitable airports that consume billions of naira monthly in diesel, maintenance and operational costs while generating minimal revenue.
According to Keyamo, Lagos airports alone account for about 63 percent of total passenger traffic and a similar share of airport revenues nationwide, 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 model as unsustainable and growth-inhibiting, noting that many regional airports struggle to maintain basic facilities despite heavy government spending.
As part of a new aviation reform roadmap, President Bola Tinubu has directed the ministry to concession non-profitable airports to private investors, with the aim of developing them into aerotropolis hubs featuring hotels, conference centres, shopping complexes and other revenue-generating infrastructure.
“The government does not have the resources or the structure to build these revenue-generating facilities,” Keyamo said
He added that all smaller airports are open for concession to both local and international investors. The minister also confirmed that Enugu airport has already been concessioned, while Port Harcourt Airport is at an advanced stage of the process, with more proposals under review.
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