The Minister of Aviation and Aerospace Development, Festus Keyamo SAN, has announced that Nigeria is establishing a national aircraft leasing company following the approval of the Federal Executive Council.
The initiative, according to the Minister, is projected to unlock over one billion dollars in future fleet financing capacity for domestic operators.
Speaking at the Aviation Working Group General Meeting in London on Wednesday, Keyamo told international financiers, aircraft lessors and legal experts that Nigeria’s recent regulatory reforms have significantly improved the country’s compliance with the Cape Town Convention, raising its compliance score from 49 per cent to 75.5 per cent and securing its removal from the Aviation Working Group blacklist.
In a statement, his Special Adviser on Media and Communications, Tunde Moshood, quoted the Minister as revealing that more than 80 per cent of aircraft operating on the Nigerian registry are now acquired through lease arrangements, adding that expired lease terms have been successfully concluded with aircraft deregistered and exported without hindrance.
He attributed this progress to a new Practice Direction signed by the Chief Judge of the Federal High Court in September 2024, which strengthened legal enforcement mechanisms for aviation matters, alongside the subsequent operationalisation of the Irrevocable Deregistration and Export Request Authorization.
Keyamo acknowledged that operational challenges remain within the broader aviation financing ecosystem, including customs-related issues, foreign exchange volatility and inter-agency coordination concerns. However, he assured stakeholders that the Federal Government is actively addressing these through coordinated reforms, judicial capacity development and digitalisation initiatives within the Nigeria Civil Aviation Authority.
“These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government’s commitment to implementing the Cape Town Convention both in substance and in practice”, Keyamo said.
He further declared: “The Cape Town Convention is more than a treaty. It is a framework for building trust.”
The proposed Nigerian Aircraft Leasing Company, Keyamo explained, will enable local airlines to access aircraft on more competitive terms, accelerate fleet modernisation and reduce the nation’s dependence on foreign lessors.
He noted that with a population exceeding 200 million people and growing passenger traffic, Nigeria requires a financially sustainable aviation system capable of attracting long-term investment.
The Minister reaffirmed Nigeria’s commitment to bridging the gap between legal compliance and practical enforcement, and expressed optimism that ongoing reforms would transform aviation financing into a catalyst for economic growth across the continent.
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