The federal executive council (FEC) has approved the establishment of a Nigerian aircraft leasing company, a private sector special purpose vehicle (SPV) with government backing.
The move could eliminate capacity challenges that continue
to affect airlines’ operations in the country’s aviation sector.
Festus Keyamo, minister of aviation and aerospace
development, spoke on the initiative on Thursday while briefing State House
journalists after the council’s meeting, chaired by President Bola Tinubu.
Keyamo said the initiative is designed to address challenges
faced by domestic airlines in accessing aircraft, noting that Nigeria’s
aviation industry is largely driven by private operators.
He said the government’s role would include providing
guarantees to financiers, particularly around aircraft repossession, while also
holding equity in the company.
“This is a game changer that you will see in the next few
months,” he said.
In November 2025, Keyamo announced that the federal
government was set to establish an aircraft leasing company to ease plane
acquisition challenges faced by domestic carriers.
He said discussions had advanced with global investors to
establish the company, a long-awaited goal in the country’s aviation roadmap.
If the plan succeeds, it will complement the Cape Town
Convention (CTC) practice direction signed by the federal government in 2024 to
enable domestic airline operators to access aircraft on dry lease.
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