The Federal Government has approved the creation of the Nigeria Aircraft Leasing Company to enhance domestic airlines’ access to aircraft and boost the nation’s aviation industry.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced the decision on his official X account on Friday, stating that it was one of the resolutions adopted at Thursday’s Federal Executive Council meeting.
The move is designed to establish a sovereign-backed leasing framework that will enable Nigerian carriers to acquire or lease aircraft more easily, minimise operational disruptions, and strengthen their competitiveness against foreign airlines.
Keyamo said the new company will operate as a Special Purpose Vehicle, fully financed and managed by private investors, while enjoying strategic government support without imposing direct financial obligations on the Federal Government.
He explained that the government’s role will mainly involve offering sovereign guarantees to international aircraft lessors and manufacturers—particularly on repossession rights—to lower investment risks and attract global financiers.
“Just yesterday, I secured the approval of the Federal Executive Council, presided over by the President, for the establishment of the Nigeria Aircraft Leasing Company.
“The company will be an incorporated Special Purpose Vehicle that will be fully privately funded, commercially operated, and impose no obligation on the Federal Government to invest, but will enjoy strategic government backing,” his tweet read in part.
Keyamo added that the arrangement would enable Nigerian airlines to source aircraft through a single, credible platform instead of individually navigating the highly competitive global leasing market.
He said the move would help tackle persistent fleet shortages that have led to delays, cancellations, and heavy dependence on expensive short-term wet leases.
The minister further noted that the initiative is intended to strengthen domestic carriers’ capacity to serve local routes and curb the dominance of foreign airlines, which account for about 95 per cent of Nigeria’s international passenger traffic.
He also revealed that the Federal Government, through the Ministry of Finance Incorporated, will take an equity stake in the company in return for its guarantees, enabling the state to earn commercial returns while supporting the sector’s growth.
Keyamo added that several African financial institutions and private investors have already indicated interest in the project, subject to formal approval.
He further noted that Nigeria’s large population, strategic location, and strong air traffic demand make it an attractive aviation market that the leasing company is positioned to unlock.
For years, Nigerian airlines faced difficulties accessing dry-lease aircraft due to the country’s blacklisting by the Aviation Working Group, over non-compliance with the Cape Town Convention, alongside past disputes related to aircraft repossession.
However, Nigeria’s compliance rating has improved significantly, rising from 49 per cent to 75.5 per cent, while its removal from the AWG watchlist in October 2024 restored access to global leasing markets.
The dry-lease model allows airlines to operate aircraft without the operational limitations associated with wet leases, offering greater control over scheduling and overall operations.
