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Aviation Gets Capital Boost as FG Unveils ₦87bn Budget for 2026

byUchechukwu Ejezie
January 22, 2026
in Economy, Industry News, National, News
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Aviation Gets Capital Boost as FG Unveils ₦87bn Budget for 2026
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The Federal Government has proposed a total allocation of ₦87.31bn for the Ministry of Aviation and Aerospace Development and its agencies in the 2026 Appropriation Bill, with capital projects taking a dominant share of the funding.

Budget documents show that ₦70.19bn, accounting for over 80 per cent of the total allocation, is dedicated to capital expenditure, underscoring the government’s focus on infrastructure development across the aviation sector. Personnel costs are pegged at ₦14.78bn, while ₦2.34bn is provided for overhead expenses. No funding was earmarked for retained revenue or grants.

The ministry headquarters received the largest share, with an allocation of ₦50.65bn, of which ₦48.55bn is set aside for capital projects. Personnel and overhead costs for the ministry were budgeted at ₦1.35bn and ₦745.74m, respectively.

Among agencies, the Nigerian Meteorological Agency (NiMet) is slated to receive ₦11.84bn, reflecting its labour-intensive structure. Personnel expenses account for ₦9.15bn, while ₦393.73m and ₦2.29bn are allocated for overheads and capital projects.

The Nigerian College of Aviation Technology (NCAT), Zaria, was allocated ₦11.28bn, comprising ₦6.54bn for capital projects, ₦4.28bn for personnel costs, and ₦464.44m for overheads.

The Nigeria Airspace Management Agency (NAMA) received ₦6.3bn, entirely devoted to capital expenditure, with no provision for personnel or overhead costs. Similarly, the Nigerian Safety Investigation Bureau (NSIB) is expected to receive ₦7.24bn, including ₦6.51bn for capital projects and ₦734.09m for overheads, but no allocation for staff costs.

The emphasis on capital spending aligns with the long-stated position of the Minister of Aviation and Aerospace Development, Festus Keyamo, who has consistently prioritised infrastructure renewal as critical to improving safety standards, operational efficiency and service delivery.

During a budget defence session at the National Assembly earlier this year, Keyamo highlighted the ministry’s commitment to accountability, noting that capital expenditure utilisation stood at 30.9 per cent in 2024, while personnel and overhead spending recorded utilisation rates of 100 per cent and 99.97 per cent, respectively.

He said the capital-heavy budget structure is designed to support airport upgrades, airspace modernisation and stronger safety oversight across the sector.

Tags: Aviation SectoreconomyFederal BudgetInfrastructurePublic Finance
Uchechukwu Ejezie

Uchechukwu Ejezie

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