- Say Refund Of N4bn To Kebbi In 2025 Budget Unnecessary
- It Contradicts Airport Concession Policy
LAGOS – Professionals in the Nigerian aviation industry have kicked against the refund of funds to the state governments for the construction of airports in their states.
For instance, the Ministry of Aviation and Aerospace Development in the 2025 Appropriation Bill to the National Assembly, which is currently undergoing review, budgeted the sum of N4 billion to the Kebbi State government as a refund for the construction of Birnin Kebbi Airport.
The document, which was obtained by Daily Independent, showed that the Federal Government, through the Ministry of Aviation and Aerospace Development marked the N4 billion item as “ongoing” with the reference number: SGF. OP/1/5.3/VIII).
But experts in the sector had condemned the practice, saying that the Federal Government was being arm-twisted to make the refund to the state government and others.
A source close to the ministry who didn’t want his name in print, confided in our correspondent that most of the state governments in the country only embark on airport construction for the diversion of funds.
The source regretted that most of the airports are unviable and unnecessary, insisting that the government is being blackmailed to take over some of the airports, thereby increasing the overhead costs of the Federal Airports Authority of Nigeria (FAAN).
The source said, “I think the urge for the state governments to eat part of their cake and still have it is for them to run into construction of airports and still re-represent them to the Federal Government to take over through refund.
“The state governments are not sincere with their interest in the construction of airports. Most of them invest in the sector for diversion of funds. I still don’t see any reason a state government will build an airport, then turn around to beg the Federal Government to take it over and seek a refund. In the last five years or so, the Federal Government has taken over no fewer than three airports in – Kebbi, Jigawa and Gombe states. What is the justification for this? They are just an additional burden on FAAN.”
Also, Comrade Olayinka Abioye, an aviation analyst, described the urge for airport construction by state governments as unwarranted.
Abioye further declared that handing over of state-owned airports to the Federal Government was unnecessary, but there are precedents.
Besides, Abioye, for instance, said that there was no justification for the ongoing construction of Ekiti airport because of its closeness to Akure Airport, predicting that it would be a failure.
He said, “For instance, I do not see any justification for Ekiti State to own an airport. I kicked against it from the beginning and till now. Now, they have a problem. Look at Akure Airport, how many kilometers is it to Ekiti State even though the roads are bad? When that airport becomes fully functional and open to commercial aircraft, we want to see how many passengers it will get in a year. These are some of the issues we are raising.”
Also, Capt. Abdullahi Sidi, the former Acting Director-General, Nigeria Civil Aviation Authority (NCAA), queried the purpose for the construction of airports by the state governments.
Sidi said that most of such airports don’t generate funds for the states, lacked economic benefits and without any viable reasons.
He explained that rather than for the state governments to concentrate on the construction of airports, such funds could be diverted for other more impacting projects and development of improved basic amenities.
He kicked against the takeover of such airports by the Federal Government, saying that some Nigeria’s policymakers are shortsighted in their visions.
He queried the costs of taking over such airports by the Federal Government, adding that state governments must have concrete reasons for taking over such airports.
He said: “Currently, FAAN has about 22 airports or more directly under its control, but what are the benefits of these airports in terms of economic benefits and serving the people of such states? A lot of such airports are just lying flat with many having only one flight a day.
“Sokoto airport hardly has three flights a day; same thing as Maiduguri, Gombe, Yola and even Asaba airports. Dutse Airport, as it is today, doesn’t not have any flights. The money they are putting into the construction of these airports can be diverted into education. Facilities in our schools are dilapidating at an alarming rate. Same thing applies to the Ogun State Cargo Airport; I am sure it doesn’t have any flights today. That is another waste by the State Government.”
Mr. Bankole Bernard, the Group Managing Director (GMD) of Finchglow Holdings Ltd., questioned the refund system.
Bernard argued that such a system gives room for corruption, adding that its takeover and refund was contradictory to the airport concession policy of the Federal Government.
He declared that any state government that lacked the means to construct, develop and sustain its own airport should not venture into the project.
He added, “From the look of things, there seems to be some political undertone or why will the state governments compete for the construction of airports and then battle to hand it over to the Federal Government?
“To refund state governments for airport projects, you are creating room for corruption in the system. I don’t want to believe that the Federal Government will, in the first place, encourage them to embark on such a project and when they refund, how do they refund the State governments? The takeover and refund, defeat the whole essence of airport concessioning. It means the concessioning exercise is faulty.”
Besides, Capt. Mohammed Badamasi, aviation expert, like others, said that it was wrong for the Federal government to refund State governments for a project initiated and completed by them without any memorandum of agreement that says that the airport was being built on behalf of the Federal Government.
Badamasi insisted that the State governments lacked the vision for such a project, but only interested in refunds especially when the cost of running the airports was capital-intensive and not profitable.
He explained that it would take several years of operation before the N4 billion refunds to the Kebbi State government would be recovered, saying that this is also largely dependent on the revenue generated from its utilisation.
He maintained that the N4 billion funds could have been used to fund some other projects in the country.
He added: “These unviable airports, including the Kebbi, are now liabilities to the Federal Government. How does the Federal Government recover the money paid to the State governments on business that is unprofitable?
“The airport is a liability to the government. The Federal Government should stop taking over liabilities from State governments henceforth.”
The Senate had in October approved over N24 billion as a promissory note refund to the Kebbi and Nasarawa State governments for construction works on the Sir Ahmadu Bello International Airport, Birnin-Kebbi and the Lafia Cargo Airport.
The Federal Government assumed control and ownership of the two airports, necessitating a reimbursement to the State governments.
According to the Senate approval, Kebbi State would receive N15.1 billion, while Nasarawa State would be reimbursed N9.5 billion.
The Senate said its decision followed the adoption of the report presented by the Committee on Local and Foreign Debts, titled: ‘Promissory Note Programme for the Refund to Kebbi and Nasarawa state governments for newly constructed airport projects executed on behalf of the Federal Government.’
The committee found that both state governments had fully completed the airport projects for which they sought reimbursement.
It also confirmed that the airports were constructed according to contractual specifications and were built to last.
The report also indicated that the Federal Ministry of Aviation conducted multiple inspection visits to the airports and verified that the work met the required standards.
Additionally, the contractors involved in the projects have been fully paid by the state governments.
According to the Bureau of Public Procurement (BPP), Kebbi State is to be reimbursed N15,137,336,095.88 for the Sir Ahmadu Bello International Airport in Birnin-Kebbi, while Nasarawa State would receive N9,542,651,786.11 for the Lafia Cargo Airport.
Also, in 2022, the Gombe State government claimed that it spent over N11 billion on its airport and demanded a refund from the Federal Government the same year.
The airport was the same year taken over by the Federal Government so that it could serve dual purposes of commercial and military use.
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