The Federal Government is taking a decisive step toward solving one of the aviation industry’s oldest headaches — aircraft acquisition.
Minister of Aviation and Aerospace Development, Festus Keyamo, on Friday announced plans to set up a Nigerian aircraft leasing company to help local airlines access aircraft without crippling financial strain.
He made the disclosure during the unveiling of a newly arrived Air Peace dry-lease aircraft in Lagos.
In a statement by his media aide, Tunde Moshood, Keyamo said discussions were already at an advanced stage with international investors to actualise the project — a key element of Nigeria’s 15-year aviation roadmap.
“We have put in place a plan to start the Nigerian aircraft leasing company now, and we have secured investors,” he said.
“This has been on the aviation roadmap for 15 years. It is not about personal benefit; it is about supporting local airlines. The idea is for Nigeria, as an entity, to negotiate directly with the world.”
New Pathway for Fleet Expansion
Keyamo explained that the leasing company would allow the government to provide sovereign guarantees and negotiate lease terms directly with global partners, a move that could drastically lower operational costs for airlines.
“Airlines won’t need to struggle individually to find aircraft — the government will provide sovereign guarantees with investors’ support,” he noted.
The proposed company, according to him, would operate on a public-private partnership (PPP) model, with both the government and domestic airlines contributing to a shared capital pool.
This framework is expected to ensure transparency, stability, and long-term sustainability for Nigeria’s aviation sector.
Industry experts say that if implemented properly, the initiative could reposition local airlines such as Dana Air, Max Air, and Ibom Air to compete effectively with foreign carriers while boosting local employment and technical capacity.
Investing in Local Strength
Keyamo reaffirmed the administration’s commitment to reviving the sector through targeted reforms, enhanced infrastructure, and policies designed to strengthen indigenous airlines.
The minister said the government was working closely with financial institutions and international leasing firms, including Afrexim Bank, to develop flexible financing models for Nigerian operators.
The proposed leasing firm is also expected to address the rising costs of foreign lease agreements, foreign exchange exposure, and aircraft repossession risks — factors that have stifled airline growth for years.
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