Stakeholders, including the opposition, are querying the timing of the project, the cost and the source of funding with some describing it as a “wasteful venture.”
The project for the reconstruction of the old terminal of the Lagos airport has been in the offing since the time of the administration of former President Muhammadu Buhari.
The N712 billion, approved for the airport’s renovation project by the Federal Executive Council (FEC) last Thursday, was not captured in the 2025 budget of the Ministry of Aviation, which is just N71,123,368,069. This implies that the approved cost of the contract is more than 10 times the budget of the ministry for 2025.
The government had said the project would be funded entirely through the Renewed Hope Infrastructure Development Fund over a period of 22 months.
In the early days of his administration, President Bola Ahmed Tinubu had moved the Presidential Infrastructure Development Fund, which was created under the administration of the late former President Buhari, from the Nigeria Sovereign Investment Authority (NSIA) to the Presidency and renamed it the Renewed Hope Infrastructure Development Fund.
There are also questions about whether the National Assembly approved the planned spending of N712.3 billion on the rehabilitation of the Lagos airport terminal.
The African Democratic Congress (ADC) yesterday alleged that it was troubling that “this massive expenditure—approved by the Federal Executive Council (FEC) on July 31, 2025—has not received any backing from the National Assembly and it is not in any of the approved budget…”
When contacted yesterday about the position of the Senate over what the opposition party alleged was extra-budgetary funding of the airport’s terminal renovation project, the spokesman of the upper legislative chamber, Senator Yemi Adaramodu. Said he would make consultation and get back to Daily Trust, but he never did as further calls to his mobile telephone line went unanswered.
The chairman of the House of Representatives Committee on Aviation Technology, Abdullahi Idris Garba, could not be reached on his mobile telephone line, while a WhatsApp message sent to him was also not replied to.
The spokesperson of the House, Akin Rotimi, when contacted, did not reply to a WhatsApp message which he asked Daily Trust to send to him.
The renovation project of the Lagos airport’s Terminal One will see its Airfield lighting on Runways 18 Left and 36 Right as well as on Taxiways B and C upgraded to CAT 2 LED systems under a N44.13 billion contract with a 30-week completion period.
To further improve operations at Lagos’ airport domestic wing, the council approved the reconstruction and conversion of over 82,000 square meters of apron areas for N24.27 billion, “to be carried out in phases over approximately 17 and a half months to expand aircraft parking space and ease traffic management.”
The FEC also approved N46.39 billion for the rehabilitation of both runways and taxiways of the Malam Aminu Kano International Airport, Kano, along with an upgrade of the airfield lighting to Category Two (CAT 2) standards.
The government had said that the 24-week project for the Kano airport was expected to significantly improve operational safety and reduce weather-related flight disruptions.
The council also approved N42.14 billion for airfield lighting upgrades of the Port Harcourt International Airport to CAT 2 standards.
The Minister of Aviation and Aerospace Development, Festus Keyamo, who addressed reporters after the FEC meeting, had said the contract for the Lagos airport, awarded to China Civil Engineering Construction Corporation (CCECC), involves a complete stripping of the old terminal down to its structural core while it would be rebuilt with new mechanical, electrical, and plumbing systems.
“We have decided to strip it down to only the carcass and then do the complete M&E again.”
In addition, he said the FEC also approved the expansion of Terminal Two, including the construction of a new apron, access roads, bridges and related works.
“When combined with the Terminal One project, the total cost of all Lagos-related airport works amounted to N712.26 billion, making it one of the most significant single investments in Nigeria’s aviation sector in recent years.
“In a move to improve security at the Lagos airport, the council approved a N49.9 billion perimeter fencing project.
“The 14.6-kilometre metal fence will feature an intrusion detection system, CCTV cameras, solar-powered floodlights, and a patrol road.”
According to the minister, the security enhancements will include a modern command centre capable of detecting any movement near the fence in real-time.
‘Repairs coming 3yrs after Terminal Two commissioning’
Daily Trust recalls that on March 22, 2022, former President Muhammadu Buhari commissioned the Terminal Two of the MMIA as part of moves to decongest the old terminal built over 40 years ago.
The Federal Government had taken a $500 million Chinese loan for the construction of four new terminals since 2013.
Daily Trust reports that the new Lagos terminal, designed to process over 15 million passengers annually, had beaten several deadlines fuelling uncertainty over the completion date amidst plan to concession the airport alongside three others in Abuja, Kano and Port Harcourt.
The four airport terminals were constructed with the loan with $100 million counterpart by the Federal Government. The other terminals are in Abuja, Port Harcourt and Kano.
After the commissioning of the Terminal Two, many airlines refused to relocate there because of the apron size which could not accommodate wide-bodied aircraft. For over a year, the terminal remains unutilized as most foreign airlines made use of wide-bodied aircraft like the B777s, A330s, B787s, among other wide-bodied aircraft.
Airlines had shunned the new terminal following the design of the airport from inception which was alleged to have conflicted with the original masterplan of the airport.
The design defect had earlier stalled the commissioning of the project which started in 2013.
Following a directive by Keyamo on assumption of office in 2023, some airlines relocated to the new terminal; while others continue to make use of the old terminal.
Ethiopian Airlines, Egypt Air, Turkish, Emirates, among others are still making use of the old terminal.
From N14bn to N712bn
It would be recalled that after the commissioning of the new terminal, the former Minister, Hadi Sirika, had ordered the demolition of some buildings around the airport to give room for the expansion of the apron of the new terminal. Some of the buildings demolished were the old headquarters of the former Accident Investigation Bureau (AIB) now Nigerian Safety Investigation Bureau (NSIB); Dominion Hangar, Evergreen Apple Nigeria, Caverton, ExecuJet hangars, office complex of the Nigerian Airspace Management Agency (NAMA), the Federal Road Service Corps (FRSC) and the towing companies close to the AIB were affected.
Sirika had, on May 19, 2019, disclosed that the contract for massive rehabilitation of the Terminal One of the Lagos airport, awarded to Julius Berge, would cost the government N14 billion. At that time, the Terminal One had recorded a series of fire incidents.
The former minister had explained that N14 billion was being set aside for the comprehensive reconstruction and expansion of the international wing of the airport after the expected teardown.
Sirika had also stated that the reconstruction work would be funded through the internally generated revenue of the Federal Airport Authority of Nigeria (FAAN).
Going by the dollar to naira exchange rate in 2019, the N14 billion mentioned by the former minister amounted to $39 million at N360 to a dollar; while the N712 billion recently approved is equivalent of $445 million at N1,600 to one dollar.
‘Contract sum huge, ploy to fund 2027 elections’
Stakeholders, who spoke to Daily Trust yesterday, alleged that the N712 billion Lagos airport’s Terminal One renovation project was a wasteful venture.
An aviation analyst and former rector of the Nigerian College of Aviation Technology (NCAT), Capt. Samuel Caulcrick, said: “That is a huge sum, but a Public-Private Partnership (PPP) arrangement thrown into the mix will enhance the impact of the N712 billion investment in revamping airport infrastructure.
“The injection of private funds would be converted into performance bonds to ensure that the upgraded infrastructure is managed effectively, with the private sector having a vested interest in delivering high-quality results.
“Government Resource Reallocation: Whatever is agreed as the performance bond from the private sector contributing funds, the government can reallocate the resources to other critical areas of the economy, maximising the impact of its investments.
“PPPs will attract additional investment from the private sector, reducing the financial burden on the government.
“By leveraging PPPs, the government can create a more sustainable and efficient infrastructure development model, driving economic growth and development in Nigeria. And you know what at an aggregate lower financing of less than N712 billion.”
A former director with the FAAN, who spoke to Daily Trust on condition of anonymity, also queried the cost of the project. He said at no time was a competitive bidding conducted to award the project.
He said N712 billion would amount to $445 million when converted to dollars.
“If they are going to strip the building to the carcass, meaning that the followings will be replaced: All the electrical and mechanical fixtures including; the three chillers in the basement; four chillers on both the “D” and “E” fingers; the lifts; the travelators; the escalators; electrical distribution panels; Power cables; 10 nos. 1MVA dry-type distribution transformers along with their corresponding 11Kv breakers, Air conditioning ducting up to evaporating units in each room, among others.
“But for this, there is no transparent bidding. It is just like the Lagos-Calabar Coastal road. It is unfortunate we are not following any due process. No bidding, no advertisement or anything,” he said.
ADC demands project’s suspension, calls it misplaced priority
The National Publicity Secretary of the African Democratic Congress (ADC), Bolaji Abdullahi, in a statement yesterday, described the N712 billion project of the Lagos airport’s Terminal One renovation as wasteful and a misplaced priority.
He questioned whether the renovation plan and its associated cost had received approval from the National Assembly, describing the expenditure as reckless and insensitive.
The party which said the N712 billion airport renovation project was outrageous called it “another brazen act of fiscal recklessness and official insensitivity which further confirms how far this All Progressives Congress, APC government is removed from the reality of the suffering people of Nigeria.”
The opposition party said, it is hard to understand how expending N712 billion into renovating an airport that already received significant upgrades in recent years makes fiscal sense in a country where “public universities wallow in chronic austerity, where basic medical care, has become a luxury that only the rich can afford, where millions of Nigerians have been thrown into poverty as a result of government’s ill-conceived policies.
“The Murtala Muhammed International Airport in Lagos remains functional and serviceable. What the aviation sector needs is not another gold-plated terminal, but proper maintenance, enhanced efficiency and the expansion of regional airports to boost real connectivity across Nigeria.”
The ADC argued that the amount of money being funneled into the renovation of one airport, approximately $500 million is the same total amount that was spent to build four new airports in Abuja, Lagos, Kano and Port Harcourt in 2014 via a Chinese loan that is yet to be repaid.
Abdullahi said: “This same Murtala Muhammed Airport had a new international terminal that was commissioned by President Muhammadu Buhari in March 2022. According to media reports at the time, the said facility was built on a landmass of approximately 56,000 square metres, with 66 check-in counters and has the capacity to process 14 million passengers annually.
“It was said to have been equipped with “censored conveyor belt, seven jet bridges, 10 ultra-modern cooling systems, heat extraction in the baggage hall, ample space for duty free shops and banks, recreational areas for children, 22-room hotel for stop-overs among others.”
He said although this airport was designed to process 14 million passengers in a year, available reports indicated that the airport handled only 6.5 million passengers in 2024, less than half of its capacity.
“The inescapable conclusion is either that the previous APC government had lied to Nigerians about what it did with the Lagos Airport or the current government is about to spend such a huge amount of money on a project that already exists.
“Perhaps even more troubling is the fact that this massive expenditure—approved by the Federal Executive Council (FEC) on July 31, 2025—has not received any backing from the National Assembly and it is not in any of the approved budget. Is this now how the government spends close to a trillion naira—without appropriation, without scrutiny, and without the consent of the Nigerian people through their elected representatives?
“We demand to know: under what constitutional provision is this money being spent? How did we get here, that the government of Nigeria, even in the face of extant accountability laws, is able to approve expenditure of this magnitude with no public breakdown of costs, no transparent procurement process, and no national debate?”
The party went further to say that N712 billion could instead deliver transformative impact by building over seven fully equipped teaching hospitals, funding free basic education across three geopolitical zones for five years, providing rural electrification to thousands of communities, or rehabilitating thousands of kilometers of federal roads and bridges.
The ADC called on all Nigerians to reject this “frivolous project. We therefore demand its immediate suspension, a full independent audit of the proposed budget, and a redirection of funds toward projects that would directly improve the lives of ordinary citizens, which should be the priority of any government.
“We warn that continued wasteful spending amid widespread hunger, economic hardship, and rising insecurity will only continue to widen the trust deficit between the people and the government. A government that has struggled to justify its need for loans cannot indulge in wasteful spending. “
HURIWA demands project’s suspension, says it’s wasteful
The Human Rights Writers Association of Nigeria (HURIWA) called for the suspension of the project, describing it as a waste.
The civil society organisation described the project as fiscally reckless, opaque in process and “potentially tied to ulterior political motives ahead of the 2027 general elections.”
Emmanuel Onwubiko, National Coordinator, HURIWA, in a statement, faulted the procedure of contract award, and the absence of public accountability in the entire transaction.
It cited the ongoing construction of the Techo International Airport in Cambodia, which is scheduled for completion in September 2025 at a cost of $1.5 billion.
It alleged that the hurried approvals and inflated project costs across various ministries might be indicative of a desperate bid by political actors to secure financial war chests.
HURIWA further questioned whether the federal government was attempting to disguise political fundraising under the cover of capital projescts.
Amount allocated fair–Aero Contractors CEOs
On his part, the Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi, hailed the planned upgrade of the Lagos airport’s Terminal One, describing it as a timely intervention towards the uplift of the busiest airport even as he stated that the amount allocated was fair.
“This administration has done a good thing by allocating adequate resources to upgrade, renovate, and probably reconstruct the Murtala Muhammed Airport which was built in the 70s, and since the 70s, apart from changing of the floor, that was not necessary and some horrible demarcations that were done, no major infrastructural upgrade has been done on that airport.
“I believe these adequate resources that have been allocated, if utilized wisely, could upgrade the MMIA terminal to any world class airport, because what we’re looking at is about 700 billion which is close to about half billion dollars, close to $500 million dollars which is a huge amount of money.
“But it is the work that needs to be done. It’s a lot of work. What I pray that the federal government will do, and what I believe they should do is to go to the people that constructed the airport in the first instance and see if they are in business, call them to come and do the upgrade there, because they know what they had built and what they have done, and to look at the master plan, and from the master plan, they should be able to do the upgrade. But I’m very, very confident in the leadership of Bunmi (Olubunmi Kuku, the FAAN MD). I know she is the FAAN MD, I know she’s well focused, and I believe she will not settle for anything less than the best.
“I believe the allocation of the amount is fair, and I think that if utilized, we will have a good airport that we will be proud of, bearing in mind that nothing works at that airport. The air conditioning systems are not working the way they are supposed to work. The conveyor belt is not working. The baggage sorting compartment is not working. The escalators, the arrival hold everything, the lounges, everything is just a make do thing that we have. So if they’re going to do the upgrade, I believe it is, it is good to do a very comprehensive infrastructure upgrade, and I hope that they will use the right contractors…”
We’re using savings from subsidy removal, naira devaluation – Keyamo
Speaking during an interview on Channels Television’s ‘Sunday Politics’, Keyamo said the “funds we’re using (for the Lagos airport’s Terminal One renovation project) are from the savings we gained through subsidy removal and naira devaluation.”
He said project was part of a broader strategy to align Nigeria’s aviation infrastructure with global standards and boost economic growth through air connectivity.
“What we are trying to do now in Lagos is to make it, first, a very modern international airport, and second, to make it a proper hub to at least begin to compete with other hubs in Africa,” he said.
Keyamo said Terminal One of the airport would be pulled down and rebuilt to meet modern standards of safety, capacity and comfort for international travellers.
He said the government would recover the N712 billion invested in the renovation of the Lagos airport’s Terminal One within three years.
“Lagos airport gives us about N200 billion every year. So in three years, the investment pays for itself,” he stated.
Earlier yesterday, Keyamo had, on his X page, said: “Due to years of neglect and because the traffic over time quadrupled beyond its capacity, the building and facilities at Terminal One became totally decrepit. We have been engaged in some patch jobs over the years just to make it a bit presentable.
“Now, shorn of all the rhetoric, what we simply want to do is to totally strip down that building, including the entire roof (leaving only the carcass), then re-design/reconfigure it & build a brand-new airport for the nation to meet modern, international standards that can also cater for the increased traffic. Both wings D and E would be affected.”
On the new terminal, Keyamo explained that the Ministry got approval to expand the building and the Apron (where aircraft park for boarding and disembarkation) in order to accommodate more aircraft, including wide-body aircraft.
“That is not all; we are constructing two new independent ring roads in and out of the airport (one for departure and one for arrival) and a bridge that will take travellers directly to the upper floor of Terminal Two Departure lounge, instead of lifting our luggage up the escalators when we are departing. It is a design error we intend to correct.
“We have also introduced smart solutions to the new designs in order to deliver a smart airport to Nigerians that can compete with any airport in the world.
“I will also encourage our compatriots to simply Google the cost of most modern airports built around the world in the last few years (including those in Africa like Angola, etc) and you will agree with me that the Bureau for Public Procurement that scrutinised and fixed the final cost of this project did a fantastic job for the nation.”
Temitope Ajayi, Senior Special Assistant on Media and Publicity to President Bola Ahmed Tinubu, also yesterday defended the project.
Ajayi, in a post on his X handle, cited the $19 billion renovation currently underway at John F. Kennedy (JFK) International Airport, New York.
“Anyone who has travelled through JFK Airport in New York in the last three years will see the extensive renovation work going on at the United States’ premier international airport. JFK is being renovated at the cost of $19 billion.
“At the last Federal Executive Council meeting, the Federal Government approved the remodelling and complete makeover of MMIA at the cost of N712.3 billion. In dollar terms, it is around $500 million.
“This will be considered a modest cost by all standards and at the level and scale of work that will be executed,” he wrote.
On her part, the FAAN MD, Olubunmi Kuku, said: “We are reimagining the future of the MMIA, not just rebuilding a terminal, but elevating Nigeria’s aviation experience to global standards. The new T1 will offer faster check-in, smarter security, brighter lounges, and better shopping—all built for you.
“This project represents a future-focused infrastructure upgrade and a solemn commitment to every traveller passing through this national gateway.
“Your understanding and support today are helping us build the MMIA of tomorrow—more vibrant, convenient, and world-class—truly the pride of the nation.
“We are undertaking this project so that every departure and return becomes a moment to look forward to. The upgraded terminal will elevate MMIA to an international platform, establishing it as a leading aviation hub in West Africa—becoming a source of national pride and meeting the highest global standards.”
History of Terminal One
Daily Trust reports that the MMIA Terminal One was built in 1978 and was officially opened in March, 1979.
Since then, the facility designed for 200,000 passengers has not undergone any structural change and expansion despite the exponential growth in passengers.
The terminal, as of 2019, used to serve over 7 million passengers with more airlines now operating into the country.
Records from the Federal Airports Authority of Nigeria (FAAN) show there are over 32 airlines, including cargo carriers, operating into the airport with over 272 aircraft movements on a daily basis comprising 123 arrivals.
The MMIA is the busiest airport in Nigeria as it handles over 70 per cent of the passenger traffic in Nigeria. It is also the highest revenue earner for FAAN.
In 2024, no fewer than 20 airports generated N382,149,252,045 from January to December with MMIA accounting for 67 per cent followed by the Nnamdi Azikiwe International Airport which accounted for 21.3 per cent.
The figure on percentage contribution on generation and collection by FAAN between January and December 2024 showed that the MMIA generated N256,067,290,722.42; Abuja airport, N81,219,777,298.42; Kano airport, N20,240,994,797.18 and Port Harcourt airport, N10,764,213,476.76; just as the headquarters generated N6,532,782,761.23.
