President Bola Tinubu’s request for a N100.5 billion reimbursement to Yobe State has renewed scrutiny of the cost of an airport originally financed by the state government, raising questions about its valuation, federal takeover, economic benefits and the financial obligations inherited from the Buhari administration.
President Bola Tinubu has asked the National Assembly to approve N100.5 billion in promissory notes to reimburse Yobe State for constructing the Muhammadu Buhari International Cargo Airport in Damaturu, bringing renewed attention to earlier reports that the state had spent approximately N18 billion on the project by 2021.
The request, presented to lawmakers on Tuesday, October 13, 2026, seeks authorisation for the Debt Management Office to establish and issue a promissory note programme worth exactly N100,509,017,234.55. The proposed reimbursement follows the federal government’s takeover of the airport, which was developed with Yobe State resources before ownership was transferred to the federal authorities.
The significant difference between the expenditure reported in 2021 and the proposed reimbursement has raised an important financial question: what additional costs, assets or valuation considerations account for the amount now recommended? Although Nigeria has experienced considerable inflation and exchange-rate changes over the intervening years, the figures cannot be directly compared without examining the full construction records and the terms of the federal takeover.
According to the president’s correspondence, the Federal Executive Council approved the takeover and reimbursement arrangement at its second extraordinary meeting on May 23, 2023, six days before former President Muhammadu Buhari left office. Tinubu is therefore seeking legislative approval to implement an agreement originating under the previous administration rather than initiating a new airport acquisition.
The president said the Bureau of Public Procurement had completed its review of the project and recommended the N100.5 billion reimbursement. He urged lawmakers to approve the issuance of promissory notes through the Debt Management Office to settle the federal government’s obligation to Yobe State.
The proposal has been referred for legislative scrutiny. Reports by several Nigerian news organisations identify the Senate Committee on Local and Foreign Debts as responsible for reviewing the request, with Senate President Godswill Akpabio directing the committee to report within one month. TheCable, however, reported a different committee referral, making the official Senate record important for resolving the discrepancy.
The proposed payment has not yet received final legislative approval, and the submission of the request does not mean the money has been disbursed.
The airport’s history stretches back to 2017, when the project began under former Yobe Governor Ibrahim Gaidam. Construction continued under Governor Mai Mala Buni, whose administration presented the facility as part of efforts to improve transportation, support commercial activities and strengthen the state’s economic connections with other parts of Nigeria.
In May 2021, Yobe’s then Commissioner for Transportation and Energy, Abdullahi Kukuwa, disclosed that the state had spent more than N18 billion on the project between 2017 and 2021. According to his account, the initial construction contract was awarded for approximately N11 billion, but subsequent variations increased expenditure.
Kukuwa also explained that the airport was awaiting runway lighting equipment before it could become fully ready for use. His remarks established that the N18 billion was expenditure reported during development, not necessarily a final audited account of every component of the completed airport.
Governor Buni subsequently referred to the N18 billion expenditure during inspections of the project in October 2021, as his administration worked to complete outstanding facilities.
Former President Buhari officially inaugurated the airport on January 9, 2023, during a visit to Yobe State, where he also commissioned other public infrastructure. The airport was named in his honour.
In March 2023, Buni announced that the federal government had taken over ownership following a formal request from the state. He presented the development as an important achievement, saying the airport was expected to strengthen economic activity and improve transportation.
The Federal Executive Council’s formal approval on May 23, 2023, subsequently provided the basis for the reimbursement arrangement cited in Tinubu’s latest request.
These events establish that the airport’s development, commissioning and transfer to federal ownership took place before the Tinubu administration assumed office. The current proposal concerns the financial settlement of that earlier arrangement.
Nevertheless, the relationship between the historical expenditure figure and the amount now recommended remains an important issue for public accountability.
The difference between N18 billion and N100.5 billion is approximately N82.5 billion, while the proposed reimbursement is about 5.6 times the amount reported in 2021. That comparison is notable but must be interpreted within the proper financial and historical context.
Nigeria’s economic conditions changed substantially during the period. According to the National Bureau of Statistics, annual headline inflation stood at 16.63 percent in September 2021. By August 2026, the bureau reported annual headline inflation of 15.39 percent, following substantial price increases in the intervening years.
The two annual inflation readings do not represent the cumulative increase in prices between 2021 and 2026. A lower inflation rate in a later year also does not mean that prices have returned to their previous levels.
The naira’s exchange rate underwent significant changes. Central Bank of Nigeria historical figures show an official exchange-rate benchmark of approximately N381 to the United States dollar in 2021. By September 25, 2026, the Nigerian Foreign Exchange Market reference rate was approximately N1,329.51 to the dollar.
The change is particularly relevant to infrastructure projects involving imported aviation equipment, electronic navigation systems, runway lighting, communication technology and other specialised facilities commonly priced in foreign currencies.
Higher construction material prices, labour costs, transportation expenses and changes in imported equipment costs could also have affected spending on work completed after the initial expenditure was reported.
However, inflation and currency depreciation do not automatically establish that an airport originally associated with N18 billion in reported expenditure should attract a N100.5 billion reimbursement.
The cost of replacing an airport at current prices is not necessarily the same as its historical construction expenditure, depreciated asset value or an amount owed under a specific takeover agreement.
The appropriate financial comparison depends on the scope of the original project, subsequent contracts, variations, actual payments, assets transferred and the valuation method used by the Bureau of Public Procurement.
The precise basis of the agency’s recommendation has not been publicly established in the reports examined. It remains unclear whether the N100.5 billion covers additional construction, equipment purchased after 2021, adjustments to project valuation, other eligible expenditure or a combination of these elements.
Publication of an itemised valuation would help distinguish legitimate project costs from broader economic changes and allow the public to understand how the reimbursement figure was determined.
Beyond its construction cost, the airport was developed with wider economic ambitions.
Yobe is an agricultural and livestock-producing state in northeastern Nigeria, with commercial activities that depend heavily on transportation links. A functioning cargo airport could help connect producers and traders to markets beyond the region, while supporting the movement of goods that require reliable and timely delivery.
The project’s intended benefits also include improved passenger connectivity, greater access for investors and businesses, and opportunities for logistics, hospitality and other services associated with aviation activities.
Such benefits could be particularly important in a region where insecurity and infrastructure limitations have historically complicated transportation and commercial activity.
However, an airport’s economic contribution cannot be determined by its construction cost or inauguration alone. Sustained operations require adequate infrastructure, cargo-handling capacity, reliable flight services, security, maintenance and sufficient demand from passengers and businesses.
Current figures on passenger movements, cargo volumes, commercial flights, operating revenue and annual maintenance expenditure would provide a clearer picture of how far the Damaturu airport has achieved its original objectives.
The available reporting does not establish those figures in sufficient detail to determine the airport’s present commercial performance or financial sustainability.
The federal takeover therefore raises questions extending beyond reimbursement. These include responsibility for future operating expenditure, maintenance, infrastructure improvements and the extent to which the facility can contribute to regional development under federal ownership.
Nigeria’s constitutional framework places aviation within the Exclusive Legislative List, giving the National Assembly legislative authority over airports, aviation safety and related matters. However, federal responsibility for regulating aviation does not mean every airport must be owned by the federal government.
The Yobe arrangement is a specific transfer of infrastructure from a state to federal ownership, accompanied by a proposed financial settlement approved in principle by the Federal Executive Council.
The method of payment also has implications for Nigeria’s public finances.
Rather than seeking immediate cash payment of the entire amount, Tinubu has requested authorisation for a promissory note programme administered by the Debt Management Office.
Promissory notes represent formal commitments to pay specified obligations according to agreed terms. They can provide a mechanism for governments to settle outstanding liabilities over time, but they also create financial commitments that must be accounted for and eventually honoured.
The proposed reimbursement therefore has implications for federal debt management and future financial obligations, even if the full amount is not paid immediately.
The published reports do not establish the proposed maturity dates, redemption arrangements or any additional financing costs associated with the notes.
Those details are important because the eventual financial burden may depend on the terms under which the instruments are issued and settled.
Nigeria continues to face competing expenditure demands in infrastructure, education, healthcare, security and other public services. The decision to recognise a N100.5 billion obligation consequently requires scrutiny of both the underlying valuation and the government’s capacity to meet its commitments.
For Yobe State, the proposed reimbursement could recover substantial public funds previously invested in an infrastructure project that has passed into federal ownership. Such a settlement could provide additional fiscal flexibility, depending on the payment terms and the state’s financial arrangements.
For the federal government, the transaction would involve accepting a major financial obligation in connection with an airport whose long-term economic contribution will depend on effective management and sustained operations.
The Senate’s consideration is therefore an opportunity to examine the construction history, the Bureau of Public Procurement’s assessment, the federal takeover agreement and the proposed financing mechanism.
An examination of the original N11 billion contract, subsequent variations and additional expenditure would help clarify the progression of costs. The final construction accounts and supporting records would also help determine how the historical N18 billion figure relates to the proposed N100.5 billion reimbursement.
Similarly, the terms of the May 2023 Federal Executive Council approval would clarify the nature of the federal government’s obligation and whether reimbursement was intended to reflect verified costs, an assessed asset value or another agreed financial measure.
The government has cited the BPP review as the basis for its recommendation, but an independently available breakdown of that assessment would strengthen public understanding of the proposal.
The legislative process remains ongoing. As of October 14, 2026, available reporting confirms that Tinubu’s request has been presented to the National Assembly and referred for further scrutiny. It does not establish that lawmakers have approved the proposed payment or that Yobe State has received the money.
The case also highlights broader questions about how state governments finance major infrastructure projects that may later become federal assets, and how the costs of those projects should be verified before reimbursement is authorised.
Such arrangements can support cooperation between federal and state governments, particularly where infrastructure serves economic interests beyond state boundaries. At the same time, clear valuation standards and transparent financial records are essential to establishing the obligations of each level of government.
The N18 billion expenditure reported in 2021 and the N100.5 billion proposed in 2026 represent different stages in the airport’s history. Their difference warrants explanation, but it does not, by itself, establish excessive spending, inflated contracts or financial wrongdoing.
What remains central is the need to reconcile the figures using the full project records, the takeover terms and the BPP’s valuation.
As the National Assembly considers Tinubu’s request, the issue extends beyond how much the federal government should reimburse Yobe State. It also concerns how public infrastructure is valued, how financial obligations are transferred between governments and whether the investments ultimately deliver the economic benefits for which they were undertaken.
A transparent account of the airport’s total construction expenditure, the basis for the N100.5 billion recommendation and the facility’s operational performance would give Nigerians a clearer understanding of both the proposed financial commitment and the public value of the project.
