Federal Gov’t Rules Out Public Funding For National Carrier, Seeks Private Investors

The federal government has stated that it has not officially abandoned plans to establish a national carrier, but has made it clear that it will no longer commit public funds to the project.

LEADERSHIP gathered that the absence of funding provisions for a national airline in the 2026 budget of the Ministry of Aviation and Aerospace Development reflects the government’s new position.

Speaking exclusively to LEADERSHIP, the minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that while the idea of a national carrier remains under consideration, the federal government will only entertain proposals driven by private investors with clear benefits to Nigeria’s aviation ecosystem.

“We have not officially jettisoned such a plan. However, the FG will not invest in such a venture. If we receive proposals from private investors that will be beneficial to our aviation ecosystem, we will consider them,” Keyamo said.

The minister’s remarks signal a significant shift from previous efforts under the administration of former Aviation minister, Hadi Sirika, where government funding played a central role in the proposed national airline project.

Under the current approach, authorities appear focused on encouraging private-sector participation as part of broader reforms to improve efficiency, competitiveness, and long-term sustainability in the aviation industry.

Industry stakeholders have consistently argued that a privately driven national carrier model would ease the government’s financial burden while promoting stronger corporate governance and operational efficiency.

The renewed stance comes amid ongoing reforms in the aviation sector aimed at enhancing infrastructure, safety standards, and investor confidence.

Analysts note that any credible proposal from private investors must clearly outline funding structures, operational strategies and long-term sustainability plans to secure government approval.

Reacting to the development, the chief pilot of the defunct Associated Airlines, Capt. Mohammed Gbadamasi, urged the minister to clearly articulate a roadmap for executing such a complex project.

According to him, establishing a national carrier involves far more than acquiring aircraft.

“There is nothing to discuss other than to wait and hope that he succeeds in proving that it is achievable. He should outline his plan for delivering this complex project.

“There are no structures on the ground to establish such a venture. It is not just about acquiring aircraft. Have the technical crew been trained? Are the offices abroad and at home ready? These are just a few of the requirements for setting up an airline from scratch,” he said.

He added that even if the government is committed to the project, it cannot be achieved within a short timeframe in a rapidly evolving global aviation environment.

“Nothing is impossible in Nigeria. After all, Hadi Sirika gave us an airline for a few hours; it was a historic moment,” Gbadamasi remarked.

Also speaking is the chief executive officer of Centurion Aviation and Security Limited, Capt. John Ojikutu, agreed with the minister, saying public funding shouldn’t be used for setting up a national carrier.

According to him, there shouldn’t be a national carrier but rather a flag carrier, saying, “If that is his plan, I am fully in support of him. Two Flag Carriers and not anymore National carrier,” the former Secretary of the Aviation Round Table Initiative (ARTI), stated.

Also, an airline operator who preferred anonymity suggested that instead of floating a new national carrier, the government should designate existing domestic airlines as flag carriers.

He cited Air Peace as a potential candidate, noting its fleet size and route network.

“I have said repeatedly that Air Peace or some other airlines should be designated as flag carriers and supported by the government. The government is already supporting Air Peace, especially with the London route and its expansion into the Caribbean and South America,” he said.

For now, the federal government maintains that while the national carrier concept has not been discarded, its revival will depend entirely on viable, investor-driven proposals capable of strengthening Nigeria’s aviation landscape.