In a bid to improve access to aircraft for Nigeria’s airlines, the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, has confirmed the establishment of a Nigerian Aircraft Leasing Company by the Federal Government of Nigeria.
A statement by the Special Adviser to the Honourable Minister of Aviation and Aerospace Development, Ms. Janet Oputa said the development was highlighted at the Federal Executive Council (FEC) Press Briefing held on Workers’ Day.
Ms. Oputa said: “This initiative represents a strategic step forward, designed as a private-sector Special Purpose Vehicle (SPV) with strong government backing. It is expected to unlock significant value across the aviation ecosystem.”
According to the statement, the key benefits of the Nigerian Aircraft Leasing Company include:
- Enhanced Fleet Access: Local airlines will now have improved access to aircraft through a single, sovereign-backed leasing platform, eliminating the challenges they face when negotiating individually. This platform will also extend opportunities to operators across West Africa and the wider African market.
- Increased Operational Capacity: By easing access to aircraft, the initiative aims to boost the capacity of domestic airlines, reduce flight cancellations and delays, and strengthen their competitiveness against dominant foreign carriers.
- Zero-Cost Revenue for Government: The Federal Government will earn equity and generate revenue without direct financial investment. Its role will primarily involve providing sovereign guarantees—particularly around aircraft repossession—while equity participation will be facilitated through the Ministry of Finance Incorporated.
- Strong Investor Confidence: Nigeria’s high passenger traffic and strategic geographic position continue to attract strong interest from leading African financial institutions, positioning the leasing company as a viable and attractive investment opportunity.
The Statement noted that “this development underscores a broader commitment to sustainable aviation growth, improved service delivery, and enhanced global competitiveness.”