The federal government has approved the establishment of a Nigerian Aircraft Leasing Company, marking a major milestone in the ongoing transformation of the nation’s aviation sector.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this Wednesday after the Federal Executive Council (FEC) meeting.
The initiative entails the creation of a private-sector-led Special Purpose Vehicle (SPV), backed by the federal government, designed to provide sustainable and structured access to aircraft for domestic and regional airline operators.
Keyamo noted that the establishment of the leasing company would reshape aircraft acquisition in Nigeria and across the African region by offering a centralised, sovereign-backed platform through which airlines can access modern fleets.
The minister in a statement issued by his Special Adviser on Media and Communications, Tunde Moshood described the initiative as a game-changer for the aviation industry.
He added: “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.”
Keyamo stressed hat the new leasing framework would enhance fleet access for Nigerian carriers, allowing them to acquire aircraft through a single, credible, government-backed entity rather than navigating the complexities of individual financing arrangements.
This access, he said, would also be extended to operators across West Africa and the broader African continent.
Keyamo stated: “Notably, the structure of the SPV ensures a zero-cost revenue model for the Federal Government. Through the Ministry of Finance Incorporated (MOFI), the government will hold equity and earn revenue without direct financial investment.
“Its primary obligation will be to provide sovereign guarantees to lessors and financiers, particularly in ensuring the repossession of aircraft when necessary.
“The initiative has already generated strong investor confidence, with leading African financial institutions and international investors expressing keen interest in participating.
” Nigeria’s high passenger traffic volume and its strategic geographic position continue to make it an attractive destination for aviation investment.”
Keyamo emphasised further that this approval aligned with the broader vision of the administration to deepen private sector participation, improve infrastructure, and position Nigeria as a leading aviation hub on the continent.
He said: “This is not just a policy decision; it is a strategic intervention aimed at unlocking growth, creating jobs, and ensuring long-term sustainability in our aviation ecosystem.
“The establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain, fostering regional connectivity, and enhancing Nigeria’s competitiveness in the global aviation market.”