The Nigerian Government has announced plans to establish a Nigerian Aircraft Leasing Company as part of efforts to strengthen the country’s aviation sector and support local airline operators.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this during a high-level meeting with airline operators and aviation stakeholders in Abuja.
According to the Minister, the initiative is aimed at helping Nigerian airlines gain easier access to aircraft, reduce operational challenges and improve service delivery across the sector.
Keyamo explained that the proposed Special Purpose Vehicle (SPV) would attract investments from private investors, development banks and financial institutions within and outside Africa.
He also revealed that the African Development Bank has partnered with Nigeria on the project under a seven-billion-dollar aviation support programme, with Nigeria selected as one of the pilot countries.
The Minister noted that the leasing company would allow local airlines to lease aircraft in Naira, thereby reducing dependence on foreign exchange and easing financial pressure on operators.
Speaking on behalf of airline operators, the Chief Executive Officer of Ibom Air, George Uriesi, described the initiative as a major breakthrough for the aviation industry.
According to him, Nigerian airlines have struggled for years with high aircraft financing costs, insurance requirements and limited access to international leasing opportunities.
Uriesi said the new leasing arrangement would provide airlines with access to aircraft at lower interest rates while enabling repayment in local currency.
The leasing company is expected to significantly boost Nigeria’s aviation sector by improving access to aircraft financing and operational support for domestic airlines. The initiative will strengthen the capacity of local carriers, enhance fleet expansion opportunities and reduce the challenges associated with aircraft acquisition and maintenance.
Beyond Nigeria, the company is also expected to contribute to the growth of Africa’s aviation industry by promoting regional connectivity, improving air transport services and supporting the development of a more competitive and sustainable aviation sector across the continent.
