The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that the Federal Government has invested about $500 million in the reconstruction and modernisation of the Murtala Muhammed International Airport, Lagos, with the funds raised without borrowing.

Keyamo made the disclosure while speaking at the 67th anniversary of Aero Contractors Airline in Lagos, where he highlighted the Federal Government’s ongoing investments in aviation infrastructure and the broader economic reforms of the President Bola Tinubu administration.

According to the minister, the funds were made available as Nigeria’s liquidity position and foreign reserves improved following the removal of the petrol subsidy.

Keyamo said the government’s ability to finance the project without borrowing demonstrated the impact of the economic reforms on the country’s financial position.

He said Nigeria’s foreign reserves had risen significantly, while improved liquidity had created room for investment in critical infrastructure.

“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do. Our liquidity rose. Our foreign reserves also rose from $3bn to $56bn now,” Keyamo said.

The minister also linked infrastructure development and private-sector investment to job creation, stressing that employment opportunities could only be sustained through increased investment and the development of critical infrastructure.

“Jobs don’t fall from heaven, jobs come as a result of either the infrastructure you are building or investments. That is how jobs are created,” he said.

The Lagos airport reconstruction is part of the Federal Government’s efforts to modernise Nigeria’s aviation infrastructure and improve the country’s position as a major aviation hub in Africa.

The project follows concerns over the ageing infrastructure at the airport and is expected to significantly improve passenger experience, operational efficiency and the airport’s capacity to handle increasing passenger traffic.

Keyamo also disclosed that the Federal Government was pursuing the completion of the long-delayed second runway project at the Nnamdi Azikiwe International Airport, Abuja.

He said the government had approved the return of the China Civil Engineering Construction Corporation to the project, noting that the cost of the runway had increased substantially because of years of delay.

The minister maintained that delays in implementing major infrastructure projects often lead to significant increases in construction costs.

Keyamo's comments come amid continued debate over the economic impact of the removal of the petrol subsidy, a policy that has expanded government fiscal space but also increased economic pressures on households and businesses.

The minister, however, defended the reforms, arguing that stronger foreign reserves, improved liquidity, infrastructure investment and increased private-sector participation would help create sustainable economic growth and employment.

The Federal Government has continued to present the Lagos airport reconstruction as one of its major infrastructure investments aimed at improving Nigeria’s aviation sector and strengthening the country’s economic competitiveness.