Minister of Aviation and Aerospace Development, Festus Keyamo, has announced that the Federal Government's ongoing aviation reforms are designed to establish Nigeria as a trustworthy and competitive hub for aircraft financing and leasing transactions.
Keyamo made this statement on Monday while addressing global aviation financiers, aircraft lessors, legal experts, and stakeholders at the General Meeting of the Aviation Working Group in London, United Kingdom.
According to a statement by his Special Adviser on Media and Communications, Tunde Moshood, the minister highlighted that recent reforms in the aviation sector have already boosted investor confidence and enhanced access to aircraft financing opportunities for Nigerian carriers.
Keyamo explained that aviation growth in emerging markets like Nigeria is often hindered by limited access to affordable capital rather than passenger demand. He emphasized that the Cape Town Convention was created to reduce legal uncertainties, strengthen creditor confidence, and lower financing costs globally.
Nigeria was among the original signatories to the Cape Town Convention during the diplomatic conference held in Cape Town in 2001 and subsequently domesticated the convention through the Civil Aviation Act, Keyamo noted.
The minister revealed that over 80% of aircraft operating in the Nigerian registry are acquired through lease arrangements, and most leased aircraft whose agreements have expired have been successfully deregistered and exported without hindrance. This development has further strengthened Nigeria's reputation as a Cape Town Convention-compliant destination.
Keyamo also disclosed that Nigeria's compliance score under the convention improved from 49% to 70.5% in September 2024, following the signing of a new practice direction by the Chief Judge of the Federal High Court to strengthen legal enforcement mechanisms in aviation-related matters.
He added that the operationalization of the Irrevocable Deregistration and Export Request Authorisation (IDERA) subsequently raised Nigeria's compliance score to 75.5%, leading to the country's removal from the Aviation Working Group blacklist.
"These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government's commitment to implementing the Cape Town Convention both in substance and in practice," Keyamo said.
He noted that the reforms have already started yielding positive results within the aviation financing ecosystem, citing recent successful dry lease transactions involving Nigerian carriers and financing institutions as evidence of renewed investor confidence.
While acknowledging the progress made, Keyamo identified lingering challenges within the aviation financing environment, including customs-related bottlenecks, temporary importation procedures, foreign exchange volatility, and inter-agency coordination issues.
However, he assured stakeholders that the Federal Government is addressing these challenges through coordinated reforms involving regulatory agencies, judicial capacity development, and digitalization initiatives within the Nigeria Civil Aviation Authority (NCAA).
Keyamo also disclosed that the Federal Executive Council (FEC) has approved the establishment of a Nigerian aircraft leasing company expected to unlock over $1 billion in future fleet financing capacity.
According to him, the proposed leasing company will enable Nigerian airlines to access aircraft on more competitive terms, accelerate fleet modernization, and strengthen operational resilience within the sector.
He maintained that Nigeria's growing aviation market requires a modern, efficient, and financially sustainable system capable of attracting long-term and competitively priced investments.
