Nigeria Approves National Aircraft Leasing Company for Airlines

The Federal Government of Nigeria has approved the establishment of a national aircraft leasing company to assist domestic airlines in accessing modern aircraft on competitive terms. This initiative was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a Federal Executive Council meeting.

The company will operate as a private sector-driven special purpose vehicle backed by the government. The new platform is designed to help Nigerian airlines acquire financing for aircraft, addressing long-standing difficulties such as securing aircraft from international lessors.

Keyamo explained that the platform will allow airlines to source aircraft through a centralized system rather than negotiating with individual international leasing firms. The government will support the project with a sovereign guarantee to encourage private investment without making direct financial contributions.

This initiative is expected to reduce the pressure on domestic airlines struggling with high leasing costs and difficult financing conditions in the global aviation market, while also positioning Nigeria as a major aviation finance hub in Africa.