The Minister of Aviation and Aerospace Development, Festus Keyamo, has announced that Nigeria has successfully resolved 98 per cent of previously trapped airline funds, describing the development as a critical step toward rebuilding investor trust and attracting new capital into the aviation industry.
He made the disclosure on Wednesday during the inaugural Nigeria Aircraft Acquisition and Investment Summit in Lagos, where he detailed the Federal Government’s comprehensive plan to reposition the aviation sector for sustainable growth.
Keyamo explained that the clearance of the funds demonstrates Nigeria’s resolve to guarantee liquidity, ensure currency convertibility, and facilitate the seamless repatriation of earnings—conditions considered essential for drawing international airlines and financial backers into the market. The minister emphasised that the country’s aviation roadmap must go beyond improving passenger numbers, calling for a strategic shift toward cargo infrastructure, efficient cold-chain logistics, and advanced border systems.
“It means our aviation strategy must extend beyond passenger traffic improvements to the deliberate development of cargo hubs, cold-chain systems, smart border processes, and airport ecosystems that can support trade, manufacturing, agribusiness, pharmaceuticals, and digital commerce,” he said.
He further noted that key airports in Lagos, Abuja, Kano, and Port Harcourt should be transformed into fully integrated economic centres rather than serving solely as transit points. “Aviation is not only about passenger mobility. It is about export competitiveness, pharmaceutical logistics, perishables, e-commerce, high-value manufacturing, and time-sensitive trade,” Keyamo stated.
Highlighting future opportunities, the minister pointed to rising air travel demand across Africa, driven by increasing urbanisation and an expanding middle class, positioning Nigeria to benefit significantly from the next phase of global aviation growth. Referencing forecasts by major aircraft manufacturers, he said the continent is expected to require between 1,205 and 1,460 new aircraft over the next 20 years, alongside approximately 76,000 aviation professionals.
“These projections show that the centre of gravity of aviation growth is shifting toward emerging markets, and Nigeria, by its scale and economic relevance, must be a principal beneficiary,” he said.
Despite these prospects, Keyamo identified the lack of affordable financing options for aircraft acquisition as a major hurdle for domestic airlines, limiting their ability to modernise fleets, expand routes, and compete effectively. He stated that the administration of President Bola Tinubu is prioritising aviation financing as part of its broader economic agenda.
According to him, the government has introduced targeted measures to reduce investment risks in the sector, including stronger enforcement of the Cape Town Convention and its Aircraft Protocol. Keyamo added that Nigeria issued the Federal High Court Practice Direction on the Convention in September 2024, followed by the Irrevocable De-Registration and Export Request Authorisation (IDERA) Advisory Circular in October 2024, both aimed at improving aircraft leasing frameworks.
“These reforms enhance investor confidence, reduce leasing costs, and improve access to dry-lease aircraft for local airlines,” he said. The minister maintained that the combined impact of regulatory improvements and the resolution of trapped funds is strengthening Nigeria’s position as a competitive destination for aviation investment.
“Capital does not simply chase opportunity; it chases bankable certainty. Nigeria has worked to restore that certainty,” he said. “These are some of the ways we are unlocking capital, by aligning law, regulation, financial credibility, and investor protection.”
