The Federal Government has approved the establishment of the Nigeria Aircraft Leasing Company to improve domestic airlines’ access to aircraft and strengthen the country’s aviation sector.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this via his official X account on Friday, noting that it was among the resolutions approved at Thursday’s Federal Executive Council meeting.
The initiative is expected to create a sovereign-backed leasing structure that will help Nigerian carriers acquire or lease aircraft more easily, reduce operational disruptions, and improve competitiveness against foreign airlines.
According to Keyamo, the new company will operate as a Special Purpose Vehicle (SPV) that will be fully funded and run by private investors, while benefiting from strategic government backing without placing direct financial obligations on the Federal Government.
He said the government’s role will largely involve providing sovereign guarantees to international aircraft lessors and manufacturers, particularly around repossession rights, to reduce investment risks and attract global financiers.
Keyamo added that the structure would allow Nigerian airlines to access aircraft through a single credible platform rather than individually struggling in the global leasing market.
He said this would help address persistent fleet shortages that have driven delays, cancellations, and heavy reliance on costly short-term wet leases.
The minister noted that the initiative is also aimed at strengthening domestic carriers’ ability to serve local routes and reducing foreign airlines’ dominance of about 95% of Nigeria’s international passenger traffic.
He further said Nigeria’s large population, strategic location, and strong air traffic demand make it a highly attractive aviation market that the leasing company will help unlock.
Shiekuma Gemade, Executive Vice President and Chief Operating Officer of Aircraft Finance Germany (AFG), told Naijaonpoint in a separate industry chat that Nigeria would benefit from a coordinated, sovereign-backed approach to aircraft leasing—similar to the structure now approved.
Drawing on his experience at Riyadh Air, where he oversaw fleet acquisition and planning, Gemade said countries that treat aviation as a national strategy tend to secure better financing terms, faster deliveries, and stronger fleet expansion outcomes.
He added that countries such as Ethiopia, Kenya, Morocco, South Africa, and Egypt demonstrate how sustained aviation planning can support broader economic growth.
However, he stressed that success would depend on consistent coordination across aviation, finance, taxation, and regulatory frameworks to build investor confidence.
For years, Nigerian airlines struggled to access dry-lease aircraft due to the country’s blacklisting by the Aviation Working Group (AWG) over non-compliance with the Cape Town Convention, as well as past disputes involving aircraft repossession.
In January 2025, the African Export-Import Bank (Afreximbank) announced plans to support Nigerian airlines with 25 aircraft through a leasing subsidiary using dry-lease financing, although there has been no update since then.
