Federal Government has approved the establishment of a Nigerian Aircraft Leasing Company as part of efforts to improve access to aircraft for domestic and regional airlines and strengthen the country’s aviation sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the approval following the recent meeting of the Federal Executive Council (FEC).
Keyamo said the initiative would operate as a private-sector-led Special Purpose Vehicle (SPV) backed by the Federal Government to provide structured and sustainable access to aircraft for domestic and regional airline operators.
According to him, the new company is expected to address one of the biggest challenges facing Nigerian carriers — limited access to aircraft on competitive leasing terms.
He explained that many local airlines currently struggle with acquiring aircraft due to high financing costs, limited access to dry lease arrangements, and concerns from international lessors over asset recovery and operational risks.
“The establishment of the Nigerian Aircraft Leasing Company 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 Nigeria as a hub for aviation financing in Africa,” Keyamo said.
He noted that the leasing company would function as a centralised sovereign-backed platform through which airlines can lease or acquire modern aircraft fleets, reducing dependence on complex individual financing negotiations with foreign lessors.
The minister said the arrangement would also be extended to operators across West Africa and other parts of the continent, potentially positioning Nigeria as a regional aviation financing hub.
Keyamo added that the framework is expected to improve operational efficiency for local carriers by strengthening fleet capacity, reducing flight disruptions, cancellations, and delays often linked to aircraft shortages and maintenance constraints.
He said the company would be fully privately funded and commercially operated, while government participation would come through strategic backing and equity holding via the Ministry of Finance Incorporated (MOFI), without direct financial outlay.
According to the minister, the Federal Government’s primary role would be to provide sovereign guarantees to financiers and lessors, particularly regarding aircraft repossession and risk mitigation mechanisms.
Industry stakeholders have long identified access to aircraft leasing as a major bottleneck for Nigerian airlines, many of which face challenges securing financing and modern fleet expansion.
Analysts say the new leasing structure could lower barriers to aircraft acquisition, improve airline competitiveness, and deepen private sector participation in Nigeria’s aviation ecosystem.
Keyamo said the initiative aligns with the Tinubu administration’s broader vision of improving infrastructure, unlocking growth opportunities, creating jobs, and positioning Nigeria as a leading aviation hub on the continent.
“This is not just a policy decision; it is a strategic intervention aimed at ensuring long-term sustainability in our aviation ecosystem,” he said.
The development is expected to complement ongoing reforms in Nigeria’s aviation sector, including efforts to improve dry lease access and strengthen investor confidence in the country’s air transport market.
