State governments of Nigeria have spent billions of Tax dollars building airports that see very little passenger activity. A few notable spending states are Bayelsa State (₦60 billion), Akwa Ibom (₦20 billion), and Jigawa and Delta (₦17 billion respectively). Even with these expenditures, the country’s passenger traffic is generated by just five airports: Lagos, Abuja, Kano, Port Harcourt, and Enugu. The remaining 27 state airports account for just 10.3% of the total. Passenger traffic rose by 13% to 16.2 million in 2022, but fell to 15.89 million in 2023.
Experts in Aviation argue that these projects are not financially viable, pointing out that government and corporate personnel make up the majority of flight travellers. Instead, they advise concentrating on the Construction of expressways. Due to underuse and inadequate upkeep, the federal government acquires control of many state-built airports. Of the 22 airports in Nigeria, only three are profitable; the remaining ones need government assistance. The amount of passengers using Nigeria’s airports has fluctuated during the last ten years. Roughly 14 million passengers travelled through the system in 2012.
There is no financial basis for state airport investment.
Due to Security concerns and economic downturns, this number decreased from 15.2 million in 2016 to 13.7 million in 2018. Passenger traffic increased to 14.2 million by 2021 and then increased by 13% to 16.2 million in 2022. Nevertheless, this increase was not maintained, as in 2023, passenger traffic marginally decreased to 15.89 million. Comparative data show a substantial disparity in the amount of passenger traffic handled by the nation’s airports: the airports in Lagos, Abuja, Kano, Port Harcourt, and Enugu together handle around 90% of all passenger traffic, while the remaining 27 state airports handle barely 10%.
Also, the CEO of Centurion Aviation Security and Safety Consult Nigeria and a former airport commandant, John Ojikutu, contends that there is no financial basis for state airport investment. He calls into question the reasoning behind these initiatives, pointing out that many of these airports are located near to already-existing, low-traffic ones. Mainstream Cargo Limited’s CEO, Seyi Adewale, agrees, highlighting the underuse of these airports and their recurrent transfer to the federal government as a result of their incapacity to maintain operations on their own. Industry expert Olumide Ohunayo points out that although several airports have potential, they struggle with a lack of competition, innovation, and capacity.
Low traffic airports are unable to pay their operating expenses.
An example of a successful example is the Murtala Muhammed International Airport in Lagos, which regularly handles the most passengers in Nigeria due to its strong infrastructure, advantageous location, and thriving economy. On the other hand, poor traffic and operational difficulties have plagued the ₦60 billion Bayelsa International Airport since its establishment. Another example is the Ondo State airport, Akure, which has seen large investments but has not been able to achieve considerable traffic levels, mostly because of its close proximity to other major airports.
These airport projects have varying degrees of economic impact. Although the building phase stimulates local economies and creates jobs, the Sustainability over the long run is dubious. Low traffic airports are unable to pay their operating expenses, which puts a pressure on state budgets. These revenues might be diverted to more beneficial areas that benefit the entire population, like road development, healthcare, and education. On the other hand, prosperous airports like those in Lagos and Abuja greatly boost regional and national economies.
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They achieve this by enabling commerce, travel, and corporate endeavours. Experts offer a number of substitute ideas for enhancing the Infrastructure of state transportation. Without the need for additional airports, accessibility might be improved by building toll expressways linking state capitals to major airports. Enhancing the current road infrastructure and investing in rail networks would also offer more affordable and environmentally friendly transportation choices. Furthermore, improving the capacity and efficiency of already-existing airports rather than building new ones could better serve the current demand.