FG Abandons National Carrier: Focus Shifts to Boosting Local Airlines – Keyamo Reveals at Aviation Milestone Event

In a major policy shift, the Federal Government of Nigeria has officially abandoned the much-anticipated national carrier project, choosing instead to channel its energy and resources into supporting indigenous airlines. This announcement was made by Festus Keyamo, the Minister of Aviation and Aerospace Development, during a public event held in Lagos, where he addressed stakeholders and media professionals at the unveiling of a historic aviation book.

The decision marks a significant turning point in Nigeria's aviation policy and is expected to redefine the sector’s growth trajectory. The new approach focuses on creating a more robust domestic aviation ecosystem, empowering Nigerian airline operators, and addressing long-standing industry challenges.

A Strategic Shift: National Carrier Project Shelved

Speaking at the launch of "100 Years of Civil Aviation in Nigeria: History, Issues and Prospects", a book authored by aviation expert and New Telegraph Aviation Editor, Wole Shadare, Minister Festus Keyamo announced the federal government’s decision to abandon the national carrier project. Instead, the Tinubu-led administration is pivoting towards strengthening local airlines through progressive and supportive policies.

“We have shifted focus to ensure growth and development for local operators through our policies,” Keyamo stated.

According to Keyamo, the government has rolled out several strategic initiatives aimed at empowering domestic airline operators. One such initiative involves revising insurance regulations for leased aircraft, which has been a major hurdle for local operators. These policy reforms are expected to enhance accessibility to aircraft, reduce overhead costs, and ultimately lower domestic airfare for Nigerian travelers.

Aviation Sector Reforms: Training, Transparency, and Catering Policies

In addition to policy reforms, the aviation ministry is also investing in the training and retraining of aviation personnel, a move designed to improve service delivery, safety, and technical capacity within the industry. Keyamo emphasized the importance of tackling internal inefficiencies and plugging revenue leakages, which have historically drained the sector's financial potential.

In a significant development that reflects a push for local content and economic empowerment, Keyamo revealed that nearly all foreign airlines operating in Nigeria are now complying with a new policy directive requiring the use of local catering services for in-flight meals. This not only supports local businesses but also injects more money into the Nigerian economy.

The Minister did not shy away from criticizing existing infrastructure, particularly highlighting the deteriorating state of the old terminal at Murtala Muhammed International Airport (MMIA) in Lagos.

“The state of the old terminal is disappointing,” Keyamo said, adding that there are concrete plans in place to demolish and rebuild the aging terminal into a modern, world-class facility.

A Glimpse into Nigeria’s Aviation Milestones and Future

Also speaking at the landmark event was Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), who provided a comprehensive overview of Nigeria's aviation industry. Kuku offered insights into the sector’s performance, growth, and challenges, painting a picture of a dynamic and evolving industry.

Kuku disclosed that Nigeria now has:

• 39 certified airline operators

• 31 operational airports

• Over 2,100 licensed pilots

She also revealed that the air transport sector contributes an estimated $1.7 billion to Nigeria’s Gross Domestic Product (GDP). This underscores the economic importance of aviation and validates the government’s decision to support local airline operators as a more sustainable approach to sectoral development.

The Role of the Private Sector: A Turning Point in Nigerian Aviation

Reflecting on the collapse of Nigeria Airways, Kuku acknowledged that the downfall of the once-proud national airline was a wake-up call for the sector. She noted that the emergence of private carriers such as Air Peace, Arik Air, and others marked a significant turning point in Nigerian aviation history.

These private players introduced capital, innovation, and competitive management practices that helped transform the aviation landscape. According to Kuku, the industry has evolved significantly since the early 2000s, driven largely by private sector participation.

“Despite challenges like infrastructure gaps, regulatory hurdles, and financing constraints, the sector has witnessed notable transformation,” she stated.

Kuku further disclosed impressive passenger statistics, saying over the past year, more than 16 million domestic passengers and over 3.5 million international passengers passed through Nigerian airports. These figures suggest a growing appetite for air travel in Nigeria and highlight the need for continued investment in airport infrastructure and airline support.

Conclusion: A New Era for Nigerian Aviation

The federal government's decision to abandon the national carrier project may come as a surprise to many, especially given the emotional and historical significance of having a national airline. However, Festus Keyamo’s announcement reflects a pragmatic approach to reviving Nigeria’s aviation sector – one that prioritizes sustainability, growth, and local empowerment over prestige projects.

By supporting indigenous carriers, improving infrastructure, and reforming aviation policies, the Tinubu administration is laying the groundwork for a more resilient, competitive, and efficient aviation industry. With growing passenger traffic, private sector involvement, and a focus on training and innovation, the future of aviation in Nigeria looks promising.

As the country marks 100 years of civil aviation, this policy shift could very well be remembered as the start of a new golden era for Nigerian skies.