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States Warned Against Unviable Airport Projects

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Managing Director of the Federal Airport Authority of Nigeria, Olubunmi Kuku.
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State governments have been advised to exercise caution in embarking on airport construction projects that may not be economically viable, amid growing concerns over the financial sustainability of several airports across Nigeria.

Industry experts and aviation stakeholders warned that while expanding air transport infrastructure can stimulate economic development, airport projects should be driven by clear economic demand, passenger traffic projections and long term commercial viability rather than political considerations.

According to stakeholders, many airports across the country continue to operate below capacity, generating insufficient revenue to cover operating and maintenance costs. They noted that building additional airports without comprehensive feasibility studies could place unnecessary financial pressure on state governments already facing limited fiscal resources.

The experts emphasised that airport development should be aligned with regional economic activities such as tourism, trade, agriculture, manufacturing and logistics. They argued that airports are most successful when supported by strong business ecosystems capable of sustaining regular passenger and cargo traffic.

They also called for greater collaboration between the federal and state governments, as well as the private sector, to ensure aviation investments deliver measurable economic benefits. Public private partnerships, they said, could provide alternative financing models while reducing the financial burden on governments.

Analysts observed that investing in existing airport infrastructure, improving operational efficiency and enhancing connectivity may offer greater economic returns than constructing entirely new airports in locations with limited commercial demand. Upgrading navigation facilities, passenger terminals and cargo handling systems could also strengthen the competitiveness of Nigeria’s aviation sector.

The warning comes as several states continue to pursue airport expansion and new construction projects as part of broader infrastructure development plans. While such investments have the potential to improve connectivity and attract investment, experts insist that careful planning and sound economic analysis are essential to ensure long term sustainability.

Stakeholders further stressed the importance of integrating airport projects into wider transportation networks, including road and rail infrastructure, to maximise their economic impact and improve accessibility for passengers and businesses.

They concluded that well planned and commercially viable airport projects can contribute to regional development, job creation and investment attraction. However, they cautioned that projects lacking sufficient demand risk becoming underutilised assets that place additional pressure on public finances rather than supporting economic growth.

SOURCE: PUNCH

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