File: Minister for Aviation and Aerospace Development, Festus Keyamo.
Tinubu had directed four ministries — Aviation and Aerospace Development, Finance, Trade and Industry, and Justice — to jointly develop the operational structure for the leasing company.
The Federal Government has moved to address the long-standing aircraft acquisition challenges facing Nigerian airlines with plans to partner the African Development Bank on a new national aircraft leasing initiative.
Minister of Aviation and Aerospace Development, Festus Keyamo, unveiled the Nigeria Aircraft Leasing Company during a stakeholders’ meeting in Abuja on Tuesday, where he described the initiative as a major breakthrough for indigenous carriers struggling with access to aircraft and financing.
In the statement through which the development was made known, Keyamo said the Federal Government remained committed to supporting local airlines through practical reforms rather than political promises.
“We are not just making mouths; we have been doing our best for the past three years. We are aware that there are so many Air Operator Certificate holders finding it difficult to take off,” the minister stated.
He explained that the aircraft leasing company was conceived as part of Nigeria’s aviation roadmap as far back as 2015, but suffered delays due to the country’s compliance issues with the Cape Town Convention, an international framework that protects aircraft financiers and lessors.
According to him, Nigeria’s recent resolution of the compliance issues has now restored confidence among international leasing firms and investors, paving the way for the commencement of the project.
“With the Cape Town Convention issues now resolved, the path is clearer for us to begin this initiative and give Nigerian airlines easier access to aircraft leasing opportunities,” he said.
Keyamo stressed that participation in the leasing company would not be compulsory for airlines, explaining that the initiative was designed strictly as a Special Purpose Vehicle to support operators and not compete with them.
“Those who are going to manage this initiative are not competitors to the airlines. It is purely an SPV established to help ease aircraft leasing for Nigerian operators. They are not applying for AOCs,” he emphasised.
The minister also disclosed that “the African Development Bank was already in the process of signing a Memorandum of Understanding with Nigeria on the initiative,” a development he said reflects growing international confidence in Nigeria’s aviation reforms.
He further revealed that President Bola Tinubu had directed four ministries — Aviation and Aerospace Development, Finance, Trade and Industry, and Justice — to jointly develop the operational structure for the leasing company.
According to Keyamo, government guarantees under the arrangement would only cover aircraft repossession obligations, while the initiative itself would remain private sector-driven to ensure efficiency and sustainability.
Responding on behalf of airline operators, the Chief Executive Officer of Ibom Air, Mr George Uriesi, praised the minister for what he described as bold reforms capable of transforming the aviation industry.
Uriesi said, “If you’re able to pull this over successfully, Honourable Minister, your administration will remain almost unbeaten in Nigerian aviation.”
He added that the aircraft leasing initiative was “a very welcome and long overdue development.”
