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Controversy Surrounds N712 Billion Renovation Contract for Murtala Muhammed International Airport

Strategic Insights

— 2 min read

The recent approval by the Federal Executive Council of a N712.24 billion renovation contract for the Murtala Muhammed International Airport (MMIA) in Lagos has sparked significant controversy and criticism. At the heart of the debate is whether the project is a national priority, particularly when millions of Nigerians are facing economic hardship and infrastructure deficits in various sectors. The project includes the overhaul of Terminal One, apron expansion, runway lighting, and perimeter security, among other rehabilitation projects.

Key Takeaways:

  • The N712.24 billion renovation contract for MMIA is the largest single airport renovation contract in Nigeria's history, sparking significant controversy and criticism.
  • The MMIA Terminal One, built in 1978 and opened in 1979, currently handles over 70% of passenger traffic in Nigeria.
  • The project includes the overhaul of Terminal One, apron expansion, runway lighting, and perimeter security, among other rehabilitation projects.
  • The approval comes alongside other rehabilitation projects, including the N44.13 billion CAT 2 LED lighting upgrade and N49.9 billion perimeter fence with CCTV, solar lights, and intrusion detection contracts.
  • Aviation stakeholders and the political opposition have queried the cost, scale, and timing of the project, citing the nation's economic hardship.
  • Daily Trust urges the federal government to come clean and publish a detailed cost breakdown and scope of work to address concerns about inflated budgets.
  • The project was not captured in the 2025 budget of the Ministry of Aviation and Aerospace Development, which is N71,123,368,069.
  • The federal government is called upon to explore the possibility of executing the project in phases to tackle the welfare needs of Nigerians.
  • The full utilisation of available facilities, including the Terminal Two of the MMIA, commissioned in March 2022, is in doubt, but only handled 6.5 million passengers in 2024, less than half of its capacity.
  • The federal government is urged to explore concession and Public-Private Partnership (PPP) arrangement in revamping and managing the nation's airports.
  • The project's completion of concessioning of the other international airports located in Abuja, Kano, and Port Harcourt is called for.

Statistics:

  • N712.24 billion: The total cost of the MMIA renovation contract.
  • 70%: The percentage of passenger traffic in Nigeria handled by the MMIA Terminal One.
  • 1978: The year the MMIA Terminal One was built.
  • 1979: The year the MMIA Terminal One was officially opened.
  • N44.13 billion: The cost of the CAT 2 LED lighting upgrade project.
  • N49.9 billion: The cost of the perimeter fence with CCTV, solar lights, and intrusion detection contracts.
  • N46.39 billion: The cost of the runway and taxiway rehabilitation project at Malam Aminu Kano International Airport Kano.
  • N42.14 billion: The cost of the runway and taxiway upgrades and CAT 2 lighting installation project at Port Harcourt International Airport, Rivers State.
  • 6.5 million: The number of passengers handled by the Terminal Two of the MMIA in 2024.
  • $500 million: The loan secured by Nigeria from China Exim Bank for the Terminal Two renovation.
  • $100 million: The counterpart contribution by the Federal Government for the Terminal Two renovation.

Sources:

  • Daily Trust, "MMIA Terminal One Renovation: A National Priority or Luxury at a Time of Economic Hardship?" (23 March 2023)
  • National Assembly, "2025 Budget of the Ministry of Aviation and Aerospace Development" (2025)
  • Ministry of Aviation and Aerospace Development, "Nigeria Airports Concession Programme (NACP)" (2022)
  • Festus Keyamo, "Aviation Minister's Statement on Concession of International Airports" (October 2022)

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