Nigeria Declines to Fund National Carrier, Opens Sky to Private Sector

In a significant policy shift, Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, has announced that the federal government will no longer invest public funds into establishing a national airline.

Speaking at a press conference in Abuja, Keyamo said the government is now inviting proposals from credible local and international investors who are willing to set up a national carrier independently. This decision comes months after the controversial Nigeria Air project—initiated under the previous administration—was suspended due to allegations of irregularities and lack of transparency.

Keyamo emphasized that while Nigeria is still keen on having a functional national carrier, it must be driven by private capital and operated on strict commercial principles. “Government will not put a dime into any new national carrier. We are open to any investor who can establish one and comply with our aviation laws,” he stated. According to him, the priority is to build a viable, self-sustaining airline that does not rely on government bailouts or interventions.

The suspension of the Nigeria Air project had raised questions about transparency in the aviation sector, especially following revelations that Ethiopian Airlines had been secretly selected as a majority stakeholder in the venture. Keyamo’s new stance appears aimed at rebuilding public trust and ensuring that future partnerships in the aviation space follow due process. “The aviation sector must operate with accountability and financial integrity,” he added.

Reactions to the announcement have been mixed. While industry experts praise the move as a step toward liberalizing the airspace and encouraging competition, critics argue that the absence of a government-backed airline could leave Nigeria dependent on foreign carriers. However, Keyamo reassured that regulatory oversight would remain stringent to protect consumer interests and national security.

With this new direction, Nigeria joins several countries that have successfully run their aviation sectors with minimal government involvement. The success of the initiative will depend largely on investor confidence, the quality of regulatory frameworks, and the government’s ability to create an enabling environment for private sector-led aviation growth.