Nigeria to Launch Aircraft Leasing Firm with Guarantee

The Nigerian government announced plans to launch an aircraft leasing firm backed by a sovereign guarantee and a minor equity stake, as disclosed by Minister of Aviation and Aerospace Development, Festus Keyamo, during a high-level meeting with airline operators in Abuja. The government will hold a 5-10% equity stake in the leasing company, which aims to facilitate aircraft acquisition and address long-standing issues faced by local airlines, particularly in relation to foreign lessors.

Keyamo emphasized that the sovereign guarantee would ensure the safety of aircraft repossession rights in case of lessee default. The initiative is designed to alleviate pressure on foreign exchange outflows and stabilize local airlines, which currently face challenges in acquiring aircraft.

The Nigerian Civil Aviation Authority has previously deregistered aircraft, complicating repossession efforts. The establishment of this special purpose vehicle (SPV) is expected to attract global investor interest and support the local aviation sector without government subsidies.