20/08/2025
Gateway Airport: A Legacy Project To Unlock Ogun Economic Potentials
Femi Ogbonnikan
All is now set for the commencement of commercial operations at the Gateway International Cargo Airport, Illisan-Remo, Ogun State, following the Interim Aerodrome Operational Permit granted it by the Nigerian Civil Aviation Authority (NCAA) on Friday, August 15, 2025. The approval allows the airport to operate scheduled commercial air transport flights. With the nod, a major international aviation company is expected to operate two weekly cargo flights from London to the airport, while passenger flights will be launched with direct routes to Abuja (Federal Capital Territory) and Port Harcourt, Rivers state capital.
This is not just another airport. It’s a benchmark Airport. A game changer. The NCAA's certification represents a major milestone, as the agency described the airport as a model for future aviation infrastructure in Nigeria. The airport's state-of-the-art facilities were judged to be world-class and a source of pride for Ogun State. While construction was ongoing, a combined team of regulatory authorities, including the NCAA, Nigerian Airspace Management Agency (NAMA), and Nigerian Meteorological Agency (NiMet) had, in December last year, visited the airport, hailing the quality of facilities put in place as one of the best in West Africa. They unanimously concluded that the infrastructure at the airport, including the Control Tower, Weather Monitoring Areas, Runway, Fire Service Stations, and the Apron, could rival any of their type around the world.
A quick run of the features of the facilities at the airport shows a 4-kilometre (4,000-metre) long and 60-metre-wide runway, which is one of the longest and widest in West Africa sub-region. This design allows it to accommodate wide-body and ultra-long-haul aircraft, including a Boeing 777 and even an Airbus A380. The runway is equipped with a sophisticated and solar-powered lighting system, including Category 1 approach lighting, elevated runway end lights, and Precision Approach Path Indicators (PAPI). It also has a Doppler VOR/DME navigation system, which is considered more precise than those at many other airports in Nigeria.
The airport equally features a five-story, 36-metre-tall air traffic control tower equipped with the state-of-the-art aviation control systems, including ADS-B transponders and fully calibrated ground-to-air communication systems. The building itself has a dedicated, uninterruptable power supply, with backup inverters to ensure continuous operations.
Apart from its terminal building designed for both domestic and international processing, the apron, which is built on 82,000 square metres, has the capacity to park up to 20 aircraft at once. The lighting system on the apron is noted for being advanced, with a winch-based system that allows for easy maintenance.
The entire airport is surrounded by a 12-kilometre perimeter fence, which is a key security feature. Above all, its communication system is built on a high-speed fibre-optic network, with a satellite-based backup (Starlink) to ensure seamless internet connectivity.
Strategically located near the nation’s commercial nerve centre, the airport will serve as a designated alternate airport to the Murtala Muhammed International Airport (MMIA), Ikeja, Lagos, helping to ease congestion and provide a diversion point for Lagos-bound flights.
The commencement of operations is expected to significantly boost trade, investment, and tourism in Ogun State and contribute to Nigeria's economic diversification by facilitating the export of agricultural produce.
The airport's location is its most significant asset. It is strategically positioned to serve as a logistics hub for the entire Southwestern region and is a designated alternative to the congested Murtala Muhammed International Airport (MMIA) in Lagos. This ensures a steady flow of both cargo and passenger traffic. The long runway, capable of accommodating large ultra-long-haul aircraft, gives it a unique competitive advantage for international freight.
Its economic multiplier effect is immeasurable. Beyond direct financial returns, the project is expected to generate a massive economic multiplier effect. The creation of over 25,000 jobs, the attraction of new industries, and the boosting of agricultural exports will lead to increased tax receipts and a more robust state economy. This indirect but substantial return on investment is a key part of the government's long-term vision.
While the project's initial cost has been reportedly put at $800 million, the prospects for a positive Return of Investment (ROI) are strong. The government's strategic approach of leveraging a public-private partnership (PPP), combined with the airport's diverse revenue streams and strategic location, positions the project for long-term financial viability and economic success.
The Gateway International Airport holds immense significance for the Ogun State economy, going far beyond just facilitating air travel. Its development is a central part of Governor Dapo Abiodun's strategy to transform the state into a major industrial and economic hub.
Conceived as a catalyst for the Agro-Allied Sector, the airport is primarily designed as an Agro-Cargo hub. This will have a transformative effect on Ogun State's agricultural sector. By providing a dedicated facility for the swift export of perishable goods, it will reduce post-harvest losses. Farmers can now get their produce (e.g., fruits, vegetables, flowers) to international markets quickly, reducing waste and increasing profitability.
Its potential as foreign exchange earnings gives a brighter future of the state’s economy, as the airport will serve as a gateway for exporting goods, generating foreign currency for the state and local businesses.
Due to deliberate policy of the government focusing on developing a Special Agro-Processing Zone (SAPZ) around the airport, the airport will attract companies to process and package agricultural products for export, adding value and creating jobs. As already projected, as estimated 25,000 jobs are expected to be created by this project either directly or indirectly. These jobs span various sectors, including aviation, logistics, ground-handling, customs, and security services.
The development of an aerotropolis (an airport city) around the facility will also attract investment in real estate, hospitality, retail, and commercial services, creating a wide range of opportunities.
The airport's location is a key part of its economic value proposition. Situated near the Sagamu Interchange on the Lagos-Ibadan Expressway, it is strategically positioned to serve as a logistics hub for the entire Southwestern region. By so doing, it will serve as a viable alternative to the often-congested Murtala Muhammed International Airport in Lagos, easing traffic and improving the efficiency of cargo and passenger movement.
Additionally, the airport has potential advantage of enhancing supply chains whereby manufacturers and businesses in Ogun State and the surrounding areas will have a direct channel for receiving raw materials and exporting finished goods, improving the overall efficiency of their supply chains.
Also, by improving connectivity and creating a business-friendly environment, the airport is a magnet for investment. The state's government is leveraging the airport to attract both local and foreign investors in various sectors, including manufacturing, real estate, and aviation-related services, thereby solidifying Ogun State's reputation as a top investment destination in Nigeria.
One big question industry experts have always raised is the issue of sustainability and profitability, considering Nigeria’s constantly changing political and business environment. While sustainability is a complex issue, the project is strategically positioned for success. The major strength that supports its sustainability is the Public-Private Partnership (PPP) Model. The government has made it clear that the airport will be run on a concession basis. This model is a major strength. It shifts the operational and financial risks to a private entity that has the expertise to manage a commercial enterprise. The state government's role in de-risking the project by building the initial infrastructure makes it a more attractive proposition for private investors, ensuring that a professional operator will take over and manage it for the long term.
The airport's designation as an alternative to the congested Murtala Muhammed International Airport (MMIA) further guarantees a steady stream of business, regardless of changes in the broader economy. Its long runway, capable of handling large cargo planes, also gives it a significant advantage over other regional airports.
All these are in addition to its diversified revenue streams. As designed from conception, the airport's business model is not solely dependent on passenger traffic, a major risk for many state-owned airports in Nigeria. The primary focus on agro-cargo, coupled with the development of an "aerotropolis" (an airport city) and a Special Agro-Processing Zone (SAPZ), creates multiple, stable revenue streams from cargo handling, commercial leases, and related services. This diversification makes it more resilient to economic shocks.
Unless a future state government comes into power with a different political agenda, the project already has an in-built sustainability plan. The airport’s strong foundation for sustainability is tied to its well-thought-out PPP model, strategic location, and diversified revenue streams. However, its long-term viability will depend heavily on the ability of its private operators to navigate Nigeria's complex business environment, and a consistent commitment from future state administrations to uphold the project's original vision. Over all, the prospects for a return on investment (ROI) for the Gateway International Cargo Airport in Ogun State are considered strong, primarily due to its strategic business model and location. While the initial capital expenditure is substantial, the long-term vision and projected revenue streams suggest a positive financial outlook.
Governor Dapo Abiodun has been explicit that the state government's investment was to de-risk the project and attract private capital. The government has received numerous offers for a concession agreement, which would allow a private company to manage the airport in exchange for paying back the state's initial investment and sharing in the revenue. This model is designed to ensure a return for the government while leveraging private sector efficiency and expertise.
In other words, the airport's business model is designed to generate income from multiple sources, minimizing reliance on a single revenue stream. As an agro-cargo hub, the airport will generate significant revenue from handling, storage, and processing fees for both agricultural and other goods.
While primarily a cargo airport, the inclusion of passenger flights to destinations like Abuja and Port Harcourt will generate income from passenger service charges, airline landing fees, and other aeronautical services. The airport is part of a larger aerotropolis project, a self-contained airport city. This includes developing a Special Agro-Processing Zone (SAPZ), which will attract businesses that will pay for land leases, provide taxes, and contribute to the economic ecosystem, providing long-term, stable revenue.
To sum it up, the Gateway International Airport is Governor Abiodun’s enduring legacy project conceived to unlock Ogun State economic potential for the benefit of the present and future generations. The good news is the availability of wide range of opportunities that are ready for grabs, following the approval of regulatory authorities for the commencement of commercial operations. These include agro-processing and packaging, Cold-Chain Logistics, warehousing and storage, real estate and infrastructure, residential development, hospitality and retail businesses, among others.
Ogbonnikan writes from Abeokuta, Ogun State capital
