Nigerian Airlines Seek Government Support for Financing

Airline operators in Nigeria, represented by Captain Roland Iyayi of the Airline Operators of Nigeria (AON), are calling on the Federal Government to enhance policies and regulations that would enable long-term financing for the aviation sector. They are advocating for the enactment of special portfolio arrangements that would allow airlines to secure long-term loans at single-digit interest rates for aircraft acquisition.

Captain Ado Sanusi, Managing Director and CEO of Aero Contractors, emphasized the need for a stable regulatory environment to build trust among lessors and financial institutions. Currently, Nigerian banks are providing loans at high interest rates ranging from 23% to 30%, which poses a significant challenge for airlines to survive.

Stanlei Amuchi, Executive Director of Fidel Bank, noted a renewed interest in the aviation sector, highlighting a strategic partnership with a Frankfurt-based aircraft financing company to streamline aircraft leasing acquisitions. The operators stress the critical role of air transport in enhancing Nigeria's economy and urge the government to support long-term financing initiatives.