FG Prioritises Infrastructure in N87.31bn Aviation Budget

The Federal Government has outlined a proposed total expenditure of N87.31bn for the Ministry of Aviation and Aerospace Development and its affiliated agencies in the 2026 Appropriation Bill, with a clear emphasis placed on capital investment.

A detailed review of the budget proposal indicates that N70.19bn, accounting for over 80 per cent of the total allocation, has been designated for capital expenditure. This allocation reflects a strong infrastructure-driven approach by the government. In comparison, N14.78bn has been allocated for personnel costs, while N2.34bn is set aside to cover overhead expenses across the ministry and its agencies.

Notably, the budget documentation does not include any provisions for retained independent revenue, donor support, or aid and grant funding, meaning the proposed spending relies entirely on direct government allocation.

Among the beneficiaries, the Federal Ministry of Aviation and Aerospace Development itself received the largest share of the funding, with a total allocation of N50.65bn. Out of this amount, N48.55bn is dedicated to capital projects aimed at infrastructure development and sector upgrades. Personnel costs for the ministry are estimated at N1.35bn, while N745.74m has been earmarked for overhead expenses.

The Nigerian Meteorological Agency (NiMet) is set to receive a total allocation of N11.84bn. A significant portion of this sum, N9.15bn, is assigned to personnel costs, underscoring the agency’s labour-intensive operational structure. Overhead costs stand at N393.73m, while N2.29bn has been allocated for capital expenditure.

Similarly, the Nigerian College of Aviation Technology (NCAT), Zaria, is projected to receive N11.28bn in total funding. The breakdown includes N4.28bn for personnel costs, N464.44m for overheads, and N6.54bn allocated specifically for capital projects, supporting infrastructure expansion and training capacity.

The Nigeria Airspace Management Agency (NAMA) has been allocated N6.3bn, with the entire amount dedicated exclusively to capital expenditure. The budget framework shows no provision for either personnel or overhead costs for the agency within this allocation.

In the same vein, the Nigerian Safety Investigation Bureau (NSIB) is expected to receive N7.24bn. Of this amount, N6.51bn is allocated for capital projects, while N734.09m is assigned to overhead expenses. Similar to NAMA, the budget does not include any allocation for personnel costs for the bureau.

The pronounced focus on capital spending aligns closely with the long-standing position of the Minister of Aviation and Aerospace Development, Festus Keyamo, who has repeatedly stressed that infrastructure renewal is essential for enhancing aviation safety, operational efficiency, and service delivery within the sector.

On 22 January 2025, the ministry formally presented its 2025 budget proposal to the Joint National Assembly Committee on Aviation and Aviation Technology at the National Assembly Complex. During this engagement, the minister reaffirmed the ministry’s commitment to transparency and accountability in the utilisation of public funds.

Keyamo also provided lawmakers with a performance review of the ministry’s 2024 budget implementation. According to his presentation, capital expenditure recorded a utilisation rate of 30.9 per cent, while personnel costs achieved full utilisation at 100 per cent. Overhead spending similarly showed near-complete execution, reaching 99.97 per cent.

The minister further explained that the ministry’s proposed 2025 budget of N71.12bn reflects clearly defined strategic priorities aimed at advancing Nigeria’s aviation and aerospace development agenda. The proposal comprised N69.22bn for capital expenditure, N1.16bn for personnel costs, and N745.74m allocated to overheads.

According to Keyamo, the capital-heavy nature of the budget structure is intentionally designed to drive infrastructure upgrades, improve service delivery standards, and reinforce safety oversight mechanisms across the aviation sector.