FG Launches Nigeria Aircraft Leasing Company to Ease Fleet Acquisition for Local Airlines
The Federal Government has launched the Nigeria Aircraft Leasing Company as part of efforts to tackle the persistent challenge of aircraft acquisition confronting indigenous carriers, with the Minister of Aviation and Aerospace Development, Festus Keyamo, describing the initiative as a major breakthrough for the nation’s aviation industry.
The unveiling took place during a high-level stakeholders’ meeting held in Abuja on Tuesday, where airline operators, aviation investors, regulators and industry stakeholders gathered to witness what many described as a strategic intervention capable of reshaping Nigeria’s aviation landscape.
Speaking at the ceremony, Keyamo reaffirmed the commitment of the Federal Government to creating policies and structures that would strengthen local airlines and stimulate growth within the sector.
According to the minister, the administration had spent the past three years implementing reforms aimed at supporting Nigerian operators, especially airline companies facing difficulties in accessing aircraft and sustaining operations despite possessing Air Operator Certificates.
“We are not just making mouth; we have been doing our best for the past three years. We are aware that there are so many Air Operator Certificate holders finding it difficult to take off,” he said.
The minister explained that the Nigeria Aircraft Leasing Company was not a new concept but part of a long-standing aviation development plan conceived as far back as 2015.
He noted, however, that implementation was delayed by issues surrounding Nigeria’s compliance with the Cape Town Convention, a critical international framework governing aircraft leasing and financing.
Keyamo disclosed that with Nigeria’s compliance concerns now resolved, the government considered it the appropriate time to activate the project.
He clarified that the leasing company was established purely as a Special Purpose Vehicle designed to support local airlines in accessing aircraft more easily and at competitive terms, stressing that it would not function as an airline operator or competitor to existing carriers.
According to him, participation in the scheme would also not be compulsory for airlines.
“Those who’re going to manage this initiative are not competitors to the airlines. It is purely an SPV established to help ease aircraft leasing for Nigerian operators. They are not applying for AOCs,” the minister stated.
Keyamo further revealed that the African Development Bank was already working towards signing a Memorandum of Understanding with Nigeria on the leasing initiative, a development he said reflected rising international confidence in the country’s aviation reforms.
He added that President Bola Ahmed Tinubu had directed four ministries – Aviation and Aerospace Development, Finance, Trade and Industry, as well as Justice – to jointly develop the operational and legal framework for the project.
The minister also explained that government guarantees connected to the arrangement would be restricted to aircraft repossession obligations, emphasising that the leasing company would remain fundamentally private sector-driven.
Industry players at the meeting hailed the initiative as a long-awaited solution to one of the most significant obstacles limiting the growth of Nigerian airlines.
Speaking on behalf of airline operators, the Chief Executive Officer of Ibom Air, George Uriesi, praised Keyamo for spearheading what he described as far-reaching reforms capable of repositioning the aviation sector.
Uriesi said the minister had successfully addressed three major concerns affecting the industry, including the resolution of the Cape Town Convention compliance issue, reforms relating to aviation insurance, and the establishment of the Nigeria Aircraft Leasing Company.
“If you’re able to pull this over successfully, Honourable Minister, your administration will remain almost unbeaten in Nigerian aviation,” he remarked.
He described the aircraft leasing initiative as a timely and much-needed development that could significantly improve the fortunes of indigenous airlines.
Aviation stakeholders believe the leasing company could reduce dependence on costly foreign leasing arrangements, improve fleet expansion opportunities for Nigerian carriers, attract fresh investments into the aviation sector and position Nigeria as a stronger player in Africa’s air transport market.
The initiative is also expected to improve access to modern aircraft, enhance operational reliability among local airlines and support the Federal Government’s broader agenda of transforming the aviation sector into a key driver of economic growth and regional connectivity.
