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Home»Business»FG Targets Capital Projects with ₦87.31bn Aviation Budget
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FG Targets Capital Projects with ₦87.31bn Aviation Budget

meridianspyBy meridianspyJanuary 21, 2026No Comments3 Mins Read
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The Federal Government has proposed a total allocation of N87.31bn for the Ministry of Aviation and Aerospace Development and its agencies in the 2026 Appropriation Bill, with the bulk of the funding directed towards capital expenditure.

 

Details of the budget proposal show that N70.19bn, representing more than 80 per cent of the total allocation, is earmarked for capital projects. At the same time, N14.78bn is set aside for personnel costs and N2.34bn for overheads.

 

The document contained no provisions for retained independent revenue or aid and grant funding.

 

The Federal Ministry of Aviation and Aerospace Development received the highest allocation of N50.65bn, with N48.55bn for capital projects. Personnel and overhead costs were budgeted at N1.35bn and N745.74 million, respectively.

 

The Nigerian Meteorological Agency was allocated N11.84bn, with personnel costs accounting for N9.15bn, overheads N393.73m, and capital expenditure N2.29bn, highlighting the agency’s labour-intensive operations.

 

Similarly, the Nigerian College of Aviation Technology, Zaria, is to receive N11.28bn, comprising N4.28bn for personnel, N464.44m for overheads, and N6.54bn for capital projects.

 

The Nigeria Airspace Management Agency was allocated N6.3bn, entirely for capital expenditure, with no provision for personnel or overhead costs in the budget breakdown.

 

Also, the Nigerian Safety Investigation Bureau is expected to receive N7.24bn, with N734.09m for overheads and N6.51bn for capital projects, again with no allocation for personnel costs.

 

The strong tilt towards capital spending aligns with the position of the Minister of Aviation and Aerospace Development, Festus Keyamo, who has consistently argued that infrastructure renewal remains critical to improving safety, efficiency and service delivery in the aviation sector.

READ ALSO  Oil Firms Commit Additional $23.8m in Competitive Bids

 

On 22 January 2025, the ministry formally presented its 2025 budget to the Joint National Assembly Committee on Aviation and Aviation Technology at the National Assembly Complex. During the presentation, Keyamo emphasised the ministry’s commitment to transparency and accountability in the management of public resources.

 

He provided a breakdown of the ministry’s 2024 budget performance, noting that capital appropriation achieved a utilisation rate of 30.9 per cent, personnel costs were fully utilised at 100 per cent, while overhead expenditure recorded a near-complete utilisation rate of 99.97 per cent.

 

The minister told lawmakers that the proposed 2025 budget of N71.12bn for the ministry reflects its strategic priorities in advancing the aviation and aerospace sectors. The proposal comprised N69.22bn for capital expenditure, N1.16bn for personnel costs and N745.74m for overheads.

 

According to Keyamo, the capital-heavy structure of the budget is designed to support infrastructure upgrades, enhance service delivery and strengthen safety oversight across the sector.

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