The Federal Government has unveiled plans to establish a Nigerian Aircraft Leasing Company as part of efforts to strengthen the country’s aviation sector and improve the capacity of local airlines.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the initiative during a Federal Executive Council briefing, describing it as a major milestone in repositioning the industry.
The proposed leasing company, structured as a private-sector Special Purpose Vehicle (SPV) with government backing, is expected to provide Nigerian airlines with easier access to aircraft through a single, sovereign-backed platform.
According to the minister, the initiative would address long-standing challenges faced by domestic operators in acquiring aircraft individually.
“With this arrangement, local airlines will no longer have to struggle independently to access aircraft. They can now leverage a single, sovereign-backed entity to meet their fleet needs,” Keyamo said.
He explained that the platform would also be extended to airlines across West Africa and the broader African market, positioning Nigeria as a regional hub for aircraft leasing.
The minister noted that the initiative would significantly boost the operational capacity of local airlines, reduce flight disruptions, and enhance their competitiveness against foreign carriers.
“This initiative is designed to enhance the capacity of local operators to service domestic routes and compete effectively with foreign airlines that currently dominate the market,” he said.
Keyamo further disclosed that the Federal Government would not bear direct financial costs, as the arrangement allows it to earn equity and revenue through the Ministry of Finance Incorporated.
“The government’s primary responsibility is to provide sovereign guarantees, particularly in ensuring the repossession of aircraft by lessors and financiers. This allows us to earn equity without direct financial exposure,” he added.
He also revealed that the project has attracted strong interest from major African financial institutions, citing Nigeria’s growing air traffic and strategic geographical position.
“This initiative is already drawing significant investor interest because of Nigeria’s aviation potential and market size,” the minister said.