Nigeria's Aviation Sector Sees Major Shift: Enugu Airport Concession Term Reduced to 30 Years Amid Public Outcry

Nigeria's Aviation Sector Sees Major Shift: Enugu Airport Concession Term Reduced to 30 Years Amid Public Outcry

The Federal Government of Nigeria has made a significant policy reversal regarding the concession agreement for the Akanu Ibiam International Airport in Enugu. Following intense public criticism and stakeholder backlash, the government has reduced the concession duration from a proposed 80 years to 30 years. This development comes after widespread outrage, particularly across the Southeast, with critics describing the original plan as a move to "mortgage the region's future."

The original plan, revealed in a draft Public-Private Partnership (PPP) agreement, had proposed an 80-year term with an optional 20-year extension. The concession agreement would begin from the "Effective Date" and include performance-based extension and early termination clauses for non-compliance. However, the public outcry led to a reevaluation of the agreement. In a major policy reversal, the Federal Executive Council (FEC) approved a significantly shortened 30-year concession period on August 1, 2025.

The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the decision during a media briefing at the State House. He emphasized that the revised concession reflects the government's commitment to transparency and responsiveness to public concerns. Keyamo confirmed that the concession deal, now approved under a Full Business Case (FBC), was initiated by Aero Alliance Consortium through an unsolicited proposal. The agreement includes both the main airport terminal and the still-unfinished cargo terminal.

The concession is expected to optimize underutilized airports through responsible private sector partnerships. The government has ensured that labour unions and all relevant stakeholders were consulted throughout the process. With this development, the government has demonstrated its willingness to listen to public concerns and make necessary adjustments.

In addition to the Enugu concession, the Federal Government has rolled out several big-ticket aviation projects to improve the country's aviation infrastructure. These projects include the full rehabilitation and modernization of Terminal One at Murtala Muhammed International Airport, Lagos, with a budget of ₦712.2 billion and a timeline of 22 months. Other projects include runway and taxiway upgrades at Mallam Aminu Kano International Airport, Kano, with a budget of ₦46.4 billion, and runway and lighting improvements at Obafemi Awolowo International Airport, Port Harcourt, with a budget of ₦42.1 billion.

Furthermore, the government has allocated ₦44.1 billion for Category II LED lighting upgrades at Runway 18L/36R and taxiways at Lagos airport, with a timeline of 30 weeks. Another project is the expansion and conversion of the Lagos domestic terminal apron to rigid pavement, with a budget of ₦24.3 billion and a timeline of 17.5 months.

The government has promised to make the full details of the Enugu concession deal public soon, as it continues to promote private sector involvement in the management and revitalization of critical infrastructure. With this development, the government has demonstrated its commitment to transparency and accountability in the aviation sector.

The reduction of the concession term from 80 years to 30 years is a significant development in the aviation sector. The government's commitment to transparency and responsiveness to public concerns is evident in this policy reversal. The rollout of big-ticket aviation projects is expected to improve the country's aviation infrastructure and enhance the overall travel experience for Nigerians and international travelers alike.