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Experts slam Tinubu’s N100.5bn airport reimbursement plan for Yobe

Aviation experts have criticized President Bola Tinubu's plan to reimburse the Yobe State Government N100.5bn for the Muhammadu Buhari International Cargo Airport, calling the payment unnecessary and raising concerns about economic viability.

By Olasunkanmi Akinlotan·Oct 15·punchng.com·4 min read

Intelligence analysis by Gemini 2.5 Flash

Experts slam Tinubu’s N100.5bn airport reimbursement plan for Yobe
Image: punchng.com

President Tinubu has sought Senate approval for a N100.5bn promissory note to reimburse Yobe State for its airport construction. However, aviation analysts and former officials argue that such state-led projects often lack clear economic objectives, are politically motivated, and can lead to inflated costs, questioning the rationale behind federal reimbursement for potentially unsusta…

Why it matters

This story highlights critical issues in Nigerian public finance and infrastructure development, particularly the allocation of federal funds to state projects, raising questions about economic viability, accountability, and the potential for political influence over sound planning in a key African economy.

Imagine your friend built a really big, fancy treehouse in their backyard, even though they don't have many friends to play in it and it costs a lot to keep it clean and safe. Now, your friend is asking your parents to pay for the whole thing, even though your parents didn't ask them to build it. Experts are saying this isn't a good idea because it's too expensive, might not be needed, and could encourage others to build things just to get money from your parents later.

Analysis

Aviation industry experts have voiced strong opposition to the Federal Government's proposed N100.5bn reimbursement to the Yobe State Government for the construction of the Muhammadu Buhari International Cargo Airport in Damaturu. This move, initiated by President Bola Tinubu, has ignited a debate about the prudence of public spending and the economic rationale behind state-funded infrastructure projects.

N100.5bn Reimbursement

President Bola Tinubu formally requested the Senate's approval for a N100.5bn promissory note program, to be issued through the Debt Management Office, aimed at reimbursing Yobe State. This request follows an approval by the Federal Executive Council (FEC) on May 23, 2023, to take over the airport and cover its construction costs. The decision to reimburse a state for an airport project, particularly one of this magnitude, has drawn scrutiny from various quarters, prompting questions about the criteria for such federal interventions and their implications for national fiscal policy.

The substantial sum involved has raised eyebrows, with critics suggesting that it could set a precedent for other states to seek similar reimbursements for projects that may not align with national strategic priorities or economic realities. The process of federal takeover and subsequent reimbursement also brings into focus the transparency and accountability mechanisms in place for evaluating project costs and ensuring value for money, especially when the initial construction was undertaken by a state government.

Aviation Experts' Concerns

Experts like Olumide Ohunayo, an aviation analyst and member of the Aviation Round Table, have questioned the economic rationale behind state governments constructing airports that may exceed their operational and maintenance capacities. Ohunayo highlighted that while airports can serve as social projects, building facilities far larger than a state's economy can sustain often leads to controversies like the current reimbursement debate. He further suggested that such projects could be driven more by political considerations, particularly in the lead-up to elections, rather than by robust economic planning.

Mrs. Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria (FAAN), echoed these concerns, cautioning state governments against embarking on airport projects without thorough economic and feasibility assessments. She pointed out that less than 10 percent of Nigerians currently travel by air, underscoring the limited market for many state-owned airports. The possibility of federal reimbursement, according to Ohunayo, could inadvertently incentivize states to inflate project costs or compromise construction standards, knowing that the federal government might eventually foot the bill, thereby creating a moral hazard in public infrastructure development.

Constitutional Authority

Samuel Caulcrick, a former Rector of the Nigeria College of Aviation Technology, provided clarity on the constitutional framework governing aviation projects in Nigeria. He explained that aviation and airports are listed under the Exclusive Legislative List in Item 3 of Part I of the Second Schedule to the 1999 Constitution. This constitutional arrangement permits state governments to construct, finance, and maintain airports or airstrips within their territories. However, it explicitly reserves the regulatory authority over aviation operations, airspace control, and the issuance of aviation licenses to the Federal Government and its agencies, such as the Nigerian Civil Aviation Authority, FAAN, and the Nigerian Airspace Management Agency.

Caulcrick's explanation underscores a critical distinction: while states have the power to build, they lack the power to regulate. This separation of powers implies that even if a state constructs an airport, its operational viability and adherence to national and international aviation standards remain under federal purview. The current controversy thus also touches upon the coordination and alignment between state-level infrastructure initiatives and federal regulatory and economic frameworks, highlighting potential gaps in integrated planning and resource allocation for critical national assets.

Key points

  • President Bola Tinubu seeks Senate approval for a N100.5bn promissory note to reimburse Yobe State for its airport construction.
  • Aviation experts criticize the plan, citing concerns over economic viability, cost, and management of state-owned airports.
  • Experts argue that such projects are often driven by political considerations rather than sound economic planning.
  • The Managing Director of FAAN cautioned states against building airports without thorough economic and feasibility assessments, noting low air travel rates.
  • A former Rector of the Nigeria College of Aviation Technology clarified that states can build airports but federal agencies retain regulatory authority.
The Downside

The reimbursement could encourage other state governments to undertake economically unviable airport projects, knowing they might eventually be bailed out by the federal government. This could lead to a misallocation of scarce national resources, potential inflation of project costs, and a proliferation of unsustainable infrastructure, further straining Nigeria's federal finances and diverting funds from more critical development areas.

Originally reported at

punchng.com

Discernion covers the story. Read the full piece at the source.

Tagsafricanigeriapoliticseconomypolicyinfrastructurepublic-spending

Author

Olasunkanmi Akinlotan

Intelligence analysis by

Gemini 2.5 Flash

Published

Oct 15, 2026

Source

punchng.com

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Topics

africanigeriapoliticseconomypolicyinfrastructurepublic-spending

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