Fed Govt mulls alternative funding models for airports’ infrastructure

The Federal Government is weighing several funding models , including adoption of viable public private participation (PPP), with investors, airlines, players in different sectors of the economy as part of the  aggressive  strategy for airports’ modernization/ rehabilitation programme.

The alternate funding initiative, sources familiar with the development said it to rely less on capital emanating from appropriation , which is insufficient to achieve the ambitious smart airports drive , already gaining significant traction on other jurisdictions.

Investigations by The Nation reveal that the government is targeting partnership with private sector players and global investors, which are ready to commit huge Capital outlay into airport projects, including operational digital infrastructure and other automated equipment that will scale up activities at the nation’s gateways.

To drive the new thinking, aviation agencies , including the Federal Airports Authority of Nigeria (FAAN), have commenced discussions with some organizations on the modalities to achieve the ambitious smart airports initiative.

FAAN, sources hinted is considering arrangements such as retail and outdoor signage advertising at major airport terminals , land leases and other commercial offerings as template for engaging would be investors.

Investigations further reveal that while a major player in the telecommunications space , has begun moves to provide digital infrastructure at five international airports, FAAN sources hinted intends to make up  for  the investment by offering  space for outdoor signage advertising.

Speaking in an interview at the weekend, FAAN’s Managing Director, Mrs Olubunmi Kuku confirmed the development.

Kuku said :” We are demonstrating that modernisation does not require waiting solely for state funding – it requires partnership, innovation, and the courage to execute.  We are not just aligning with global best practices – we are implementing them, joining the ranks of modern aviation hubs worldwide.”

“But this is only the beginning, and we need your continued support to realise our full vision. Very soon, we will extend this service to the Temporary Terminal at MMIA, followed by the international airports in Enugu, Port Harcourt, and Kano. Our ambition is clear: no Nigerian airport should be an offline island in a digital world.To potential partners in both the public and private sectors: join us. This is what partnership looks like when it is driven by genuine purpose. Together, we can accelerate the deployment of critical digital infrastructure that will position Nigeria as a leader in aviation excellence. The signal is on – now let us amplify it together.

“We have turned on the signal today. But the signal we are truly sending is this: Nigerian aviation is writing a new chapter – one of innovation, partnership, and unwavering commitment to excellence.”

Also speaking in an interview, Chairman of United Nigeria Airlines, Professor Obiora Okonkwo said partnership between airlines and the airport authority will bring about enhanced efficiencies, cost reduction and other operational benefits.

Experts say Nigeria needs to deepen partnership to drive it’s airports digitization and modernisation projects.

Modernization at airports, they say  include : the development of airport infrastructure for improved efficiency, passenger comfort, and operating capabilities.

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Part of such projects, they say  involve building new terminals, adding facilities to existing ones, and integrating new technologies. Modernization is intended to ease increasing air traffic, enhance security, and minimize environmental degradation.

The global airport infrastructure market size was valued at $120.20 billion in 2025.

It  is projected to grow from $124.83 billion in 2026 to $186.45 billion by 2034, exhibiting a cumulative annual growth rate (CAGR) of 5.14 percent  during the forecast period.

The growth is driven by an increasing number of infrastructure projects and recent developments, along with numerous sustainable advancements.

The market refers to all infrastructure present on the airport, involves construction, renovation, and maintenance of significant airport infrastructure globally.

 They comprise runways, passenger numbers, control towers, taxiways, and so on. It is driven by increasing air travel demand, government expenditure, and technological advancements to improve the process efficiency and security. Factors like increasing passenger traffic, increasing air cargo, and demands for newer and greener airports are driving the market.

 Expansion and investment in new technologies allow airports to transport more passengers and freight more effectively.