The Federal Government has approved the establishment of a national aircraft leasing company to support domestic airlines in accessing modern aircraft on competitive terms.
TheTimes Nigeria reports that the Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a meeting of the Federal Executive Council, describing the initiative as a major intervention in the country’s aviation sector.
In a statement issued on Friday, Keyamo said the company would operate as a private-sector-driven Special Purpose Vehicle with government backing.
The minister said the new platform would change the way Nigerian airlines acquire and finance aircraft.
According to him, the initiative is expected to address the long-standing difficulties faced by local carriers in securing aircraft from international lessors.
Keyamo said, “This initiative 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 the country as a hub for aviation financing in Africa.”
He explained that the platform would allow airlines to source aircraft through a centralised system instead of negotiating individually with international leasing firms.
Keyamo said the Federal Government would support the project through sovereign guarantees, while private investors would drive its operations.
He noted that the structure was designed to give investors confidence, especially in the area of asset protection and security.
The minister added that the government would participate through the Ministry of Finance Incorporated, without making direct financial investment.
He said, “Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security.”
According to the statement, the initiative will not be limited to Nigerian airlines.
The leasing company is also expected to offer opportunities to operators across West Africa and the wider African aviation market.
Keyamo said the model had already attracted interest from both local and international investors, adding that it would help improve airline capacity and strengthen the aviation value chain.
The minister said the establishment of the aircraft leasing company formed part of efforts to reposition Nigeria as a major aviation financing hub in Africa.
He added that access to modern fleets remained critical to improving safety, reliability and competitiveness among Nigerian carriers.
The initiative is expected to reduce the pressure on domestic airlines, many of which have struggled with aircraft acquisition, high leasing costs and difficult financing conditions in the global aviation market.
