The Federal Government has approved the establishment of a Nigerian Aircraft Leasing Company to increase access to aircraft for domestic and regional operations. The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after the Federal Executive Council (FEC) meeting held on Thursday.
Public-Private Partnership Model
He said the initiative is a creation of a private-sector-led Special Purpose Vehicle (SPV), backed by the Federal Government, designed to provide sustainable and structured access to aircraft for domestic and regional airline operators. According to the Minister, the establishment of the leasing company will fundamentally reshape aircraft acquisition in Nigeria and across the African region by offering a centralized, sovereign-backed platform through which airlines can access modern fleets.
Keyamo stated: “This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa.”
Operational Benefits
The Minister explained that the new leasing framework will significantly enhance fleet access for Nigerian carriers, allowing them to acquire aircraft through a single, credible, government-backed entity rather than navigating the complexities of individual financing arrangements. The opportunity will also be extended to operators across West Africa and the broader African continent.
In terms of operational capacity, he explained that the initiative is expected to strengthen the ability of local airlines to efficiently service domestic routes, reducing the frequency of flight cancellations and delays. It will also empower Nigerian carriers to better compete with international airlines that currently dominate the market.
Zero-Cost Revenue Model
The Special Assistant on Media to the Minister, Tunde Moshood, further explained that the structure of the SPV ensures a zero-cost revenue model for the Federal Government. Through the Ministry of Finance Incorporated (MOFI), the government will hold equity and earn revenue without direct financial investment. He added that the government's primary obligation will be to provide sovereign guarantees to lessors and financiers, particularly in ensuring the repossession of aircraft when necessary.
Investor Confidence
The statement mentioned that the initiative has already generated strong investor confidence, with leading African financial institutions and international investors expressing keen interest in participating. He further stated that Nigeria’s high passenger traffic volume and its strategic geographic position continue to make it an attractive destination for aviation investment.
Keyamo noted that the policy decision is a strategic intervention aimed at unlocking growth, creating jobs, and ensuring long-term sustainability in the aviation ecosystem. He said the establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain, fostering regional connectivity, and enhancing Nigeria’s competitiveness in the global aviation market.
