The Federal Government has signed a 30-year concession agreement for Port Harcourt International Airport
The Federal Government has signed a 30-year concession agreement for Port Harcourt International Airport with Port Harcourt Airport Company Limited, in a move aimed at attracting private investment, improving airport operations and expanding the commercial potential of Nigeria's aviation infrastructure.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the agreement on Thursday, November 12, 2026, in Abuja, during its formal signing. The arrangement forms part of the government's efforts to reduce the financial burden of operating loss-making airports and encourage private sector participation in airport development.
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Keyamo said the concession had received approval from President Bola Tinubu and the Federal Executive Council (FEC). He explained that the government intended to improve operational efficiency and increase revenue from airport facilities through private investment and commercial development.
FG Seeks Private Investment to Improve Airport Operations
Keyamo said the Federal Government currently uses profits generated by major airports to subsidise the operations of other airports that struggle to cover their operating expenses.
He identified personnel costs, diesel purchases, electricity and other operational requirements as some of the expenses placing pressure on government finances.
According to the minister, public resources alone cannot adequately support the development and commercial expansion of every airport in the country. He argued that private sector participation would provide additional capital, improve management efficiency and allow operators to explore revenue opportunities beyond conventional aviation services.
He also highlighted the commercial potential of airport facilities, including shopping malls, supermarkets, conference centres and other business establishments that could generate additional revenue.
The concession therefore seeks to expand the airport's non-aeronautical revenue streams while improving its capacity to support passenger and aircraft operations.
Concessionaire Faces Five-Year Performance Reviews
The agreement introduces a performance monitoring arrangement under which the concessionaire will undergo reviews every five years to assess its compliance with the agreed operational standards.
Keyamo said the Federal Government retained the authority to reclaim the airport if the operator failed to meet its contractual obligations.
The minister also explained that previous attempts by successive administrations to concession airports encountered resistance from aviation labour unions and legal disputes.
However, he said the government secured the cooperation of aviation unions through negotiations before finalising the Port Harcourt agreement.
He assured aviation workers that the arrangement would not result in job losses or reductions in their existing conditions of service. He added that President Tinubu had directed the ministry to protect workers' welfare throughout the concession process.
Investors Target Port Harcourt as a Regional Aviation and Commercial Hub
The concessionaire expressed plans to transform Port Harcourt International Airport into a major aviation and commercial hub serving the Gulf of Guinea.
Eyo Asuquo, representing the concessionaire, said the company intended to introduce international operational standards, improve airport facilities and expand the range of commercial activities around the facility.
He also indicated that the development would create additional employment opportunities rather than lead to staff retrenchment.
The proposed transformation into an airport city could create opportunities for businesses operating around the airport, including hospitality, logistics, retail, commercial property and other supporting services.
Port Harcourt's strategic position within the Gulf of Guinea also provides an opportunity to strengthen regional air connectivity and support commercial activities across the wider West African region.
However, the concessionaire has yet to disclose specific investment figures, construction timelines or detailed infrastructure development commitments in the announcement.
FG Considers Concessions for Benin and Yola Airports
The Port Harcourt agreement could form part of a wider government strategy to attract private investment into other airports facing operational and financial constraints.
Keyamo disclosed that the government had received proposals from investors interested in developing Benin Airport in Edo State and Yola International Airport in Adamawa State.
The government is considering these proposals as it explores opportunities to make more airport facilities commercially viable.
The development follows the Federal Government's broader efforts to restructure airport management, improve infrastructure and reduce the financial burden of maintaining facilities that generate insufficient revenue.
Airport Concession Could Create Wider Investment Opportunities
The 30-year agreement places private sector participation at the centre of the proposed transformation of Port Harcourt International Airport. Its potential economic impact extends beyond aviation operations to commercial property development, logistics, hospitality and other businesses that depend on efficient transport infrastructure.
For property investors and businesses, the proposed airport-city development could create opportunities for commercial real estate investment and supporting infrastructure around the airport.
However, the success of the arrangement will depend on the concessionaire's ability to deliver the promised improvements, attract additional commercial activities and meet the performance requirements established by the Federal Government.
The five-year performance reviews will provide an important mechanism for monitoring the operator's obligations throughout the concession period.
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