The Federal Government has approved the creation of a Nigerian Aircraft Leasing Company to expand access to aircraft for domestic and regional carriers.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced the approval after Thursday’s Federal Executive Council (FEC) meeting.
He said the company will operate as a private-sector-led Special Purpose Vehicle (SPV), backed by the Federal Government, to provide sustainable and structured access to aircraft for Nigerian and regional airline operators.
“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” Keyamo said.
The Minister explained that the leasing company will serve as a centralized, sovereign-backed platform through which airlines can acquire modern fleets. This will allow carriers to bypass complex individual financing deals. The service will also be extended to operators across West Africa and the wider continent.
He said the framework will improve fleet capacity for Nigerian airlines, enabling them to service domestic routes more efficiently and reduce flight cancellations and delays. It is also expected to help local carriers compete better with international airlines that currently dominate the market.
Tunde Moshood, Special Assistant on Media to the Minister, said the SPV will run on a zero-cost revenue model for the Federal Government. Through the Ministry of Finance Incorporated (MOFI), the government will hold equity and earn revenue without direct financial outlay.
Moshood added that the government’s main obligation will be to provide sovereign guarantees to lessors and financiers, particularly to ensure repossession of aircraft when necessary.
He noted that the initiative has already attracted strong investor interest from leading African financial institutions and international investors, citing Nigeria’s high passenger traffic and strategic location.
Keyamo described the policy as a strategic intervention to unlock growth, create jobs, and ensure long-term sustainability in the aviation sector.
“The establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain, fostering regional connectivity, and enhancing Nigeria’s competitiveness in the global aviation market,” he said.
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