The Federal Government has said savings and improved liquidity following the removal of the petrol subsidy enabled it to mobilise about $500 million for the reconstruction of the Lagos airport and other critical aviation infrastructure.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Monday in Lagos while speaking at the 67th anniversary of Aero Contractors Airline.
Keyamo said the funds were not obtained through borrowing, but became available as the country’s liquidity and foreign reserves improved under the administration of President Bola Tinubu.
The minister was responding to a question from the Managing Director of Aero Contractors on the state of the aviation industry under the administration’s Renewed Hope Agenda.
Keyamo said the government’s ability to undertake major infrastructure projects was linked to the economic changes following the removal of the fuel subsidy.
He said, “Let’s be honest. Forget about what the politicians are saying. You know, we are all politicians. But I am saying, in actual fact, that is what happened.
“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do. Our liquidity rose. Our foreign reserves also rose from $3bn to $56bn now.
“And investors are rushing into the country because they now see the country as viable.”
The minister’s comments come against the backdrop of continued debate over the economic consequences of the fuel subsidy removal, particularly its impact on household incomes and the rising costs of food, transportation and other essential commodities.
While the policy has been criticised over the hardship experienced by Nigerians, Keyamo defended the administration’s approach, arguing that stronger macroeconomic fundamentals and increased foreign reserves were necessary to attract investment and create jobs.
Responding to concerns over the relevance of foreign reserves to Nigerians facing economic hardship, he said, “People say, ‘What will foreign reserves do for the economy? People are hungry.’ You know, this is the cheap talk they engage in to play on cheap sentiment.
“They will say people are dying and so on. All those things they are saying are cheap blackmail.”
Keyamo said the government’s priority should be to create conditions capable of attracting investors into the country, arguing that foreign investment would bring capital, infrastructure and employment opportunities.
Questioning the calls for the suspension of the subsidy removal, the minister said, “Tell me, what exactly will bring investors? What will bring jobs? Tell me.
“It is when foreign investors see that you are healthy, your economy is healthy, and your foreign reserves are healthy that they will come into the country. They will build infrastructure, they will bring in money, and they will bring jobs.
“And that is what brings jobs. That is what creates jobs.”
He argued that employment could not be created through government pronouncements alone, stressing that sustainable job creation depended largely on infrastructure development and private investment.
“Jobs don’t fall from heaven, jobs come as a result of either the infrastructure you are building or investments. That is how jobs are created,” he said.
