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Home Economy

FG Proposes N87.31bn for Aviation and Aerospace in 2026 Budget, Majority for Infrastructure

Victoria Emeto by Victoria Emeto
January 21, 2026
in Economy
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FG Proposes N87.31bn for Aviation and Aerospace in 2026 Budget, Majority for Infrastructure

The Federal Government has proposed a total allocation of N87.31 billion for the Ministry of Aviation and Aerospace Development and its agencies in the 2026 Appropriation Bill, with the bulk of the funding earmarked for capital expenditure, highlighting a strong focus on infrastructure development.

Budget details show that N70.19 billion—more than 80 per cent of the total allocation—is designated for capital projects, while N14.78 billion is allocated to personnel costs and N2.34 billion to overheads. The proposal does not include provisions for retained independent revenue or aid and grant funding.

The Federal Ministry of Aviation and Aerospace Development is set to receive the largest portion, N50.65 billion, of which N48.55 billion is for capital projects. Personnel and overhead costs are budgeted at N1.35 billion and N745.74 million, respectively.

Other agencies also received allocations:

Nigerian Meteorological Agency (NiMet): N11.84 billion – personnel costs N9.15 billion, overheads N393.73 million, capital expenditure N2.29 billion, reflecting labour-intensive operations.

Nigerian College of Aviation Technology, Zaria: N11.28 billion – personnel N4.28 billion, overheads N464.44 million, capital N6.54 billion.

Nigeria Airspace Management Agency (NAMA): N6.3 billion – entirely for capital expenditure, with no personnel or overhead allocations.

Nigerian Safety Investigation Bureau: N7.24 billion – overheads N734.09 million, capital N6.51 billion, with no personnel allocation.

The capital-focused structure aligns with the position of Minister of Aviation and Aerospace Development, Festus Keyamo, who has consistently emphasised that infrastructure renewal is critical for improving safety, efficiency, and service delivery in the aviation sector.

In his presentation of the 2025 budget to the Joint National Assembly Committee on Aviation and Aviation Technology, Keyamo highlighted past budget performance, noting that capital expenditure achieved a utilisation rate of 30.9 per cent, personnel costs were fully utilised at 100 per cent, and overhead expenditure nearly fully utilised at 99.97 per cent.

The minister explained that the 2025 budget of N71.12 billion had been structured to support strategic priorities in advancing Nigeria’s aviation and aerospace sectors, with N69.22 billion for capital projects, N1.16 billion for personnel, and N745.74 million for overheads.

According to Keyamo, the capital-heavy allocation is designed to accelerate infrastructure upgrades, enhance service delivery, and strengthen safety oversight, underscoring the government’s commitment to modernising the sector and improving operational efficiency.

Tags: #AerospaceDevelopment#AviationSafety#CapitalExpenditure#NigeriaAviation
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