The Federal Executive Council (FEC) has approved the establishment of a Nigerian aircraft leasing company aimed at easing aircraft shortages, reducing operating costs for domestic airlines and improving flight reliability across the aviation sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development on Tuesday in Abuja during a meeting with airline operators and key industry stakeholders following the Council’s approval of a Special Purpose Vehicle (SPV) to drive the initiative.
According to him, the leasing company will be backed by international investors, development finance institutions and private financiers, with the goal of improving access to aircraft on more flexible and affordable terms for Nigerian carriers.
Keyamo explained that unlike many countries where airlines are state-owned or heavily subsidised, Nigeria’s aviation sector is largely driven by private operators, making access to financing more challenging.
He noted that the new structure would enable aircraft to be leased in naira, thereby shielding airlines from foreign exchange volatility and reducing heavy financing burdens that often affect operations.
The minister added that the framework is designed to attract global investors by strengthening regulatory safeguards, particularly around aircraft repossession and safety compliance, without relying on direct sovereign guarantees.
He also revealed that the African Development Bank has selected Nigeria as a pilot country under its continental aviation financing programme, with a projected $7 billion facility earmarked for implementation across Africa.
Keyamo said ongoing discussions with international partners are expected to culminate in further agreements at upcoming aviation meetings in Brazil.
He linked the initiative to persistent flight delays and cancellations, noting that many domestic airlines operate with limited aircraft capacity, which affects efficiency and revenue.
“Our objective is to support airlines with policies that enhance operational efficiency and service delivery. Airlines lose significant revenue whenever flights are cancelled,” he said.
Chief Executive Officer of Ibom Air, Ibom Air, George Uriesi, welcomed the development, describing it as a major breakthrough for the industry.
He said Nigerian airlines have long struggled with access to affordable aircraft financing due to investor concerns over repossession risks and weak enforcement frameworks, though recent reforms have improved confidence.
Industry stakeholders believe the initiative could boost aircraft availability, improve flight schedules and help stabilise airfares in the long run.
Keyamo further acknowledged the impact of high aviation fuel prices and foreign exchange pressure on the sector but insisted that government reforms are focused on long-term sustainability.
He added that the leasing company is expected to be incorporated in the coming weeks as final arrangements with investors and development partners are concluded.
