Nigeria to Establish Aircraft Leasing Company with Guarantee

The Federal Government of Nigeria, represented by Minister of Aviation and Aerospace Development Festus Keyamo, announced the establishment of a Nigerian Aircraft Leasing Company, which will be backed by a sovereign guarantee. This initiative aims to attract international investors and develop financial institutions to tackle the chronic aircraft shortage affecting domestic airlines.

The Federal Executive Council (FEC) approved the creation of a special purpose vehicle (SPV) to drive this project. Keyamo emphasized that Nigeria's aviation sector is unique in Africa, being predominantly privately owned, unlike other African carriers that are heavily subsidized by their governments.

The proposed leasing company will source funds from international investors and the African Development Bank, with a focus on reducing airlines' exposure to volatile foreign exchange rates. The initiative aims to stabilize the aviation sector and improve access to aircraft financing, which has been a significant barrier for Nigerian airlines.