Politics Of Refund For Redundant State-Owned Airports

The continuous construction of non-economically viable airports by State governments and the insistence on refunds, aviation experts say it’s another way of diverting public funds. OLUSEGUN KOIKI writes.  

Nearly all the states in Nigeria have airports or are on the verge of having one, but just three of these airports are commercially viable.

Mrs. Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria (FAAN) in a media parley last year, mentioned the Murtala Muhammed Airport (MMA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja and Mal. Aminu Kano International Airport (MAKIA), Kano as the only economically viable airports in the country,

According to her, the other 19 airports under FAAN, are subsidised because they don’t generate enough passenger traffic to cover their operating costs.

But, despite these odds, more State governments continue to construct airports in their various states, which are later transferred to FAAN. As it stands, FAAN manages airports built by State governments, which often lack long-term planning and sustainable operations.

Apart from these, the State governments also request for refund from the Federal Governments for the unsolicited airports constructed by them.

As it stands, some of the state-owned airports have less than 5,000 passenger traffic per annum, while an airport like Dutse International Airport, in 2023, recorded almost zero passenger traffic.

Some industry experts say that most of the State governments embark on airport construction for alleged diversion of public funds, while the Federal Government is blackmailed to take over some of such airports.

Regularly, the Federal Government refunds State governments billions of naira for the projects, thereby increasing the financial and personnel burdens on FAAN and other government agencies.

For instance, in the 2025 appropriation bill to the National Assembly, the Ministry of Aviation and Aerospace Development, budgeted the sum of N4 billion to the Kebbi State Government as a refund for the construction of Birnin Kebbi Airport. This is not the total refund for the State Government.

The Senate had in October last year, approved the total sum of N15.1 billion to the Kebbi State Government for the refund of its airport project.

The 2025 appropriation bill obtained by Daily Independent, showed that the Federal Government, through the Ministry of Aviation and Aerospace Development marked the N4 billion item as “ongoing” with the reference number: SGF. OP/1/5.3/VIII).

Apart from Kebbi, the Senate also within the same period, approved another N9.5 billion to the Nasarawa State government for construction works on the Lafia Cargo Airport.

Also, in 2022, the Gombe State Government claimed that it spent over N11 billion on its airport and demanded a refund from the Federal Government the same year.

The airport was within the same year taken over by the Federal Government so that it could serve dual purposes of commercial and military use.

Also, the Federal Government had shown the willingness to take over the Chuba Okadigbo International Airport built by the Ebonyi State government in 2023.

The State Government had claimed that it expended N36 billion on the construction of the airport, while an additional N13 billion it alleged would also be spent on the reconstruction of its runway and upgrade of other facilities.

The above are just a few examples of state-owned airports taken over or refunded by the Federal Government in recent years.

State governments arm-twisting FG

Experts in the industry likened the takeover of inefficient state-owned airports by the Federal Government to arm-twisting the government by some states.

They also said that these takeovers and refunds make a mockery of the airport concessioning scheme of the present administration.

Capt. Mohammed Badamasi, aviation expert, declared that it was wrong for the Federal government to refund State governments for a project initiated and completed by them without any memorandum of agreement that says that the airport was being built on behalf of the Federal Government.

Badamasi insisted that the State governments lacked the vision for such a project, but only interested in refunds especially when the cost of running the airports was capital-intensive and not profitable.

He explained that it would take several years of operation before the N4 billion refund to the Kebbi State government for instance, would be recovered, saying that this is also largely dependent on the revenue generated from its utilisation.

He maintained that the N4 billion fund could have been used to fund some other projects in the country. 

He added: “These unviable airports, including the Kebbi, are now liabilities to the Federal Government. How does the Federal Government recover the money paid to the State governments on business that is unprofitable?

“The airport is a liability to the government. The Federal Government should stop taking over liabilities from State governments henceforth.”

Also, Mr. Bankole Bernard, the Group Managing Director (GMD) of Finchglow Holdings Ltd., questioned the refund system.

Bernard argued that such a system gives room for corruption, adding that its takeover and refund was contradictory to the airport concession policy of the Federal Government.

He declared that any State Government that lacked the means to construct, develop and sustain its own airport should not venture into the project.

He added: “From the look of things, there seems to be some political undertone or why will the State governments compete for the construction of airports and then battle to hand it over to the Federal Government?

“To refund State governments for airport projects, you are creating room for corruption in the system. I don’t want to believe that the Federal Government will, in the first place, encourage them to embark on such a project and when they refund, how do they refund the State governments? The takeover and refund, defeat the whole essence of airport concessioning. It means the concessioning exercise is faulty.”

Besides, Capt. Abdullahi Sidi, the former Acting Director-General, Nigeria Civil Aviation Authority (NCAA), queried the purpose for the construction of airports by the State governments.

Sidi said that most of such airports don’t generate funds for the states, lacked economic benefits and without any viable reasons.

He explained that rather than for the State governments to concentrate on the construction of airports, such funds could be diverted for other more impacting projects and development of improved basic amenities.

He kicked against the takeover of state-owned airports by the Federal Government, pointing out that some Nigeria’s policymakers are shortsighted in their visions.

He queried the costs of taking over such airports by the Federal Government, adding that the government must have concrete reasons for taking over such airports.

He said: “Presently, FAAN has about 22 airports or more directly under its control, but what are the benefits of these airports in terms of economic benefits and serving the people of such states? A lot of such airports are just lying flat with many having only one flight a day.

“Sokoto airport hardly has three flights a day; same thing as Maiduguri, Gombe, Yola and even Asaba airports. Dutse Airport as it is today, doesn’t not have any flights. The money they are putting into the construction of these airports can be diverted into education. Facilities in our schools are dilapidating at alarming rates. Same thing applies to the Ogun State Cargo Airport; I am sure it doesn’t have any flights today. That is another waste by the State Government.”

Comrade Olayinka Abioye, aviation analyst, described the urge for airport construction by State governments as unwarranted.

Abioye further declared that handing over of state-owned airports to the Federal Government was unnecessary, but there are precedents.

Besides, Abioye for instance, said that there was no justification for the ongoing construction of Ekiti airport because of its closeness to Akure Airport, predicting that it would be a failure.

He said: “For instance, I do not see any justification for Ekiti State to own an airport. I kicked against it from the beginning and till now. Now, they have a problem.

“Look at Akure Airport, how many kilometers is it to Ekiti State even though the roads are bad? When that airport becomes fully functional and open to commercial aircraft, we want to see how many passengers it will get in a year. These are some of the issues we are raising.”