The Federal Executive Council, presided over by President Bola Tinubu, has approved the establishment of the Nigeria Aircraft Leasing Company. This decision was reached on Friday.
Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed the development following the council meeting. He described it as a major step for the industry.
The new firm will function as an incorporated Special Purpose Vehicle (SPV). Consequently, it will be fully privately funded and commercially operated by its investors.
Furthermore, the company will impose no obligation on the Federal Government to invest funds. However, it will enjoy strategic government backing to attract global partners.
The government’s primary function will be to provide sovereign guarantees to international lessors and manufacturers. This offers security for asset repossession for global firms.
By doing so, the government intends to reduce perceived risks for investors. This follows long-standing issues where local airlines struggled to access dry-lease agreements.
“And for this, the government holds equity through the Ministry of Finance Incorporated (MOFI),” Keyamo stated regarding the state’s involvement.
The company will act as an SPV for the acquisition or leasing of aircraft globally. Meanwhile, these assets will be made available for the use of local operators.
Positioning Nigeria as a Leading Aviation Hub
In terms of operational capacity, Keyamo noted that the project will afford local airlines the option to further lease these aircraft locally through a single entity.
This entity will be a credible body with sovereign backing. Consequently, it solves the problem of high insurance premiums and difficult leasing terms for Nigerian carriers.
Keyamo said this approval aligns with the vision of the Tinubu administration to deepen private sector participation and improve critical national infrastructure.
Furthermore, it intends to position Nigeria as a leading aviation hub on the continent. This is part of the Aviation Roadmap designed to modernize the sector.
“This is not just a policy decision; it is a strategic intervention intended to unlock growth, creating jobs, and ensuring long-term sustainability,” the Minister added.
He believes the intervention will ensure the aviation ecosystem remains viable. Furthermore, it will foster regional connectivity and enhance Nigeria’s global competitiveness.
“The establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain,” Keyamo concluded after the session.
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