The Federal Government has officially unveiled the Nigeria Aircraft Leasing Company, a new initiative designed to address aircraft acquisition and leasing challenges facing domestic airlines, in what stakeholders have described as a major milestone for the country’s aviation industry.
The unveiling was performed on Tuesday in Abuja by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a high-level stakeholders’ meeting attended by airline operators, aviation investors, regulators and other critical players in the sector.
Speaking at the event, Keyamo said the establishment of the leasing company formed part of the Federal Government’s broader commitment to strengthening indigenous airline operators and improving the operational capacity of the nation’s aviation industry.
According to the minister, the administration has continued to implement policies aimed at supporting local carriers, particularly those struggling to commence operations despite obtaining Air Operator Certificates (AOCs).
“We are not just making mouth; 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,” he said.
The minister explained that the Nigeria Aircraft Leasing Company had been part of the aviation development roadmap since 2015 but suffered delays due to Nigeria’s compliance challenges with the Cape Town Convention, an international treaty governing aircraft financing and leasing.
He disclosed that with the compliance issues now resolved, the government was able to proceed with the implementation of the leasing initiative.
Keyamo stressed that the leasing company would operate strictly as a Special Purpose Vehicle (SPV) intended to facilitate easier access to aircraft for Nigerian operators, noting that airlines would not be compelled to patronise it.
He clarified that those managing the initiative were not competitors to existing airlines and would not apply for Air Operator Certificates.
“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,” the minister stated.
The minister further revealed that the African Development Bank was in the process of signing a Memorandum of Understanding with Nigeria on the project, a move he said demonstrated growing international confidence in the initiative.
He also disclosed that President Bola Ahmed Tinubu had directed four ministries – Aviation and Aerospace Development, Finance, Trade and Industry, and Justice – to collaborate on the operational framework and structure of the company.
Keyamo added that government guarantees under the arrangement would be limited strictly to aircraft repossession obligations, while maintaining that the initiative would remain largely private sector-driven.
Industry stakeholders at the meeting welcomed the development, describing it as long overdue and potentially transformative for Nigeria’s aviation sector.
Responding on behalf of airline operators, the Chief Executive Officer of Ibom Air, George Uriesi, commended the minister for what he described as bold reforms within the aviation industry.
Uriesi said the minister had successfully addressed three critical issues affecting the sector, namely the resolution of Cape Town Convention compliance concerns, insurance-related reforms, and the establishment of the Nigeria Aircraft Leasing Company.
“If you’re able to pull this over successfully, Honourable Minister, your administration will remain almost unbeaten in Nigerian aviation,” Uriesi said, describing the leasing initiative as “a very welcome and long overdue development”.
Stakeholders believe the new leasing company will significantly improve access to modern aircraft for local airlines, deepen investor confidence, enhance operational efficiency and strengthen the competitiveness of Nigerian carriers across Africa and the global aviation market.
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