Aviation Sector Budget Declines to ₦87.3 Billion Amid Infrastructure Push

Federal Airports Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA)

The 2026 aviation budget prioritises the completion of ongoing infrastructure projects.

₦87.3 billion has been appropriated to the Ministry of Aviation and Aerospace Development and its associated agencies in the 2026 Appropriation Bill. This proposed allocation represents a decrease from the ₦105.95 billion earmarked in 2025, yet remains a significant increase over the ₦63.32 billion allocated in 2024. The budget, presented to the National Assembly in December 2025, focuses on critical infrastructure upgrades, including airport expansions and the development of the Aerospace University in Abuja.

Breakdown of Sectoral Allocations and Agencies

The ₦87.3 billion total is distributed across several key agencies under the Ministry’s supervision. The Ministry of Aviation and Aerospace Development itself is allocated ₦50.65 billion. Other significant beneficiaries include:

  • Nigerian Meteorological Agency (NIMET): ₦11.84 billion.

  • Nigerian College of Aviation Technology (NCAT), Zaria: ₦11.28 billion.

  • Nigerian Airspace Management Agency (NAMA): Captured in the budget for the first time in five years.

Notably, the Federal Airports Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA) were excluded from the 2026 budget line items. Both agencies are classified as self-sustaining, revenue-generating organisations, although the government continues to fund specific large-scale projects under their purview.

Major Capital Projects and Infrastructure Upgrades

Three primary projects account for ₦10 billion of the total aviation budget. These initiatives were also included in the 2025 budget, with identical funding levels; however, it remains unclear whether the previous year’s funds were fully disbursed.

  1. General Aviation Terminal (GAT) Expansion: ₦1 billion allocated for the Mallam Aminu Kano International Airport (MAKIA) in Kano.

  2. State Government Refund: ₦4 billion to the Kebbi State Government for the construction of Sir Ahmadu Bello International Airport, Birnin Kebbi.

  3. Institutional Infrastructure: ₦5 billion for the construction of a corporate headquarters and staff accommodation for the Ministry and its agencies.

Additionally, the government has earmarked ₦3 billion for the Aerospace University Abuja and ₦5 billion for safety-critical projects. The latter includes airport certification, Category III Airfield Lighting (AFL), and disabled aircraft recovery equipment.

Digital Economy and Communications Allocation

The 2026 Appropriation Bill also details the financial roadmap for the Ministry of Communications and Digital Economy (Comtech). A total of ₦84.56 billion is allocated to the ministry and two of its agencies.

  • Ministry of Communications: ₦46.06 billion.

  • Nigerian Postal Service (NIPOST): ₦28.60 billion.

  • Nigeria Communication Satellite (NIGCOMSAT): ₦9.90 billion.

The Comtech budget is heavily geared toward capital expenditure, which accounts for ₦50.7 billion of its total spend, while personnel costs are set at ₦32.9 billion.

Broader Fiscal Context: The "Budget of Consolidation

The aviation and communications sectors form part of a larger 2026 fiscal plan titled "Budget of Consolidation, Renewed Resilience and Shared Prosperity." President Bola Tinubu has stated that this budget is intended to stabilise macroeconomic indicators and improve living standards.

In comparison to the aviation sector, other ministries received significantly larger portions of the national budget. The Ministry of Works leads with ₦3.4 trillion, followed by Defence (₦3.2 trillion), Education (₦2.3 trillion), and Health (₦2.1 trillion). Other high-priority sectors include Agriculture (₦1.4 trillion) and Power (₦1.1 trillion), reflecting the administration's focus on national security, food sustainability, and infrastructure.

Conclusion

The 2026 aviation budget prioritises the completion of ongoing infrastructure projects and the formalisation of aerospace education in Nigeria. While the total allocation has seen a decline compared to 2025, the re-inclusion of NAMA and the continued funding of airport safety upgrades suggest a strategic emphasis on operational efficiency and security. As the bill undergoes legislative review, the successful implementation of these projects will depend heavily on the timely release of funds and the ministry's ability to execute its capital expenditure plans.

Amarachi Edison

Written by Amarachi Edison, Real Estate Content Manager & Author of the Daily Digest at Nigeria Housing Market

Amarachi specializes in trending topics and the rapid evolution of property markets in Nigeria. With a keen eye for real-time market shifts and regulatory changes, Amarachi excels at distilling complex topics and trends into actionable insights, ensuring investors stay ahead of the curve in Nigeria's most dynamic residential hubs.

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