FG Spent N8.73bn On Power Supply for Nnamdi Azikiwe Int’l Airport, Abuja — Report Claims

The Federal Government of Nigeria in 2024 made a major investment in the power infrastructure of the Nnamdi Azikiwe International Airport in Abuja, spending a total of N8.73 billion.

This expenditure was primarily aimed at ensuring a consistent and reliable electricity supply to the new international terminal, which has historically faced challenges with power outages.

These disruptions have often led to operational inefficiencies and passenger dissatisfaction, affecting critical services such as airfield lighting, baggage handling systems, and security scanning equipment.

The report detailing this expenditure was highlighted by BudgIT’s transparency platform, GovSpend on December 25th, 2024. According to the report, substantial payments were made to J. Marine Logistics Ltd for outsourced power supply. Specifically, N5.67 billion was allocated for power supply between March and September 2023.

Additionally, on May 9, 2024, N2.19 billion was paid for services covering October to November 2023 and part of December 2023, along with an additional N874.42 million as a part-payment for power during that period.

Aviation expert Olumide Odunayo commended the government's efforts to address these longstanding issues but emphasized the need for a more sustainable approach. He suggested that "the airport should build an alternative power source, probably using a solar system or windmill."

Odunayo pointed out the high costs associated with the current power arrangements, which rely heavily on electricity distribution networks and diesel-powered generators. He noted, "The current supply from the electricity distribution network is enormously expensive, affecting not only the airport but also the businesses within it. This, in turn, increases the cost of services, which is passed on to passengers."

Odunayo further criticized the reliance on diesel-powered generators, stating, "Instances of power failure force a dependence on diesel-guzzling generators, which are as costly as they are unsustainable. Airports should invest in their own independent power or explore other renewable sources." He urged the government to transition to renewable energy sources such as solar or wind power, highlighting that this would not only reduce costs but also provide a more reliable and environmentally friendly energy supply. "It would be better to work towards cost-efficient and environmentally friendly alternatives. This approach would not only ensure reliability but also significantly reduce long-term expenses," he added.

In addition to the investments made in 2024, the Federal Government has appropriated N105.95 billion for the aviation industry in the 2025 budget, marking a significant increase from the N63.32 billion allocated in the outgoing year.

Among the proposed expenditures, N5 billion has been earmarked for power and energy improvements at airports in Lagos, Abuja, and other locations. The government has stated that the project is "ongoing." Another N5 billion has been allocated for the development of aerospace facilities in Abuja, which the Ministry of Aviation described as also "ongoing."

These investments aim to improve passenger experiences, enhance operational efficiency, and solidify Nigeria’s airports as international hubs. The new terminal at Abuja airport, commissioned in December 2018, was designed to handle increased passenger traffic and provide state-of-the-art facilities.

Minister of Aviation and Aerospace Development Festus Keyamo stated in May 2024 that the Federal Government spends N1 billion monthly on electricity at Lagos airport. He added that the ministry is working on adopting eco-friendly practices to eliminate the use of diesel in airport operations.

According to Keyamo, by investing in solar power systems, the ministry will cut the high costs of operating the airports, saving the government 30 percent of the current monthly electricity costs. "We are making cautious and gradual efforts towards embracing eco-friendly practices, which is actually what the world is about now — eco-friendly practices and green technologies in line with ICAO’s long-term global aspirational goal of net-zero carbon emissions in the aviation sector," Keyamo said.

He further noted: "They want us to apply, first of all, the type of fuel that does not burn so much, that has low carbon emissions, and that is why we want to gradually eliminate the use of diesel to run our airports. We want to run our airports on solar, and that will save us so much every month. Lagos airport alone, I am told, we spend N1 billion monthly on electricity. That is still something I am trying to crack," he said.