The Federal Executive Council, presided over by President Bola Tinubu, has approved the establishment of the Nigeria Aircraft Leasing Company.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced that this significant development followed the conclusion of the Federal Executive Council meeting.
The initiative entails the creation of a private-sector-led Special Purpose Vehicle, backed by the federal government, designed to provide sustainable and structured access to aircraft for domestic and regional airline operators.
Keyamo explained that the new leasing company would aggregate aircraft for local airlines, reducing their dependence on foreign lessors and improving operational stability, noting that instead of airlines going all over the world looking for aircraft, there will now be a local platform to lease aircraft on both short-term and long-term basis.
The company will run on a zero-cost revenue model for the federal government through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without a direct financial outlay, while its main obligation will be to provide sovereign guarantees to lessors and financiers, particularly to ensure repossession of aircraft when necessary.
According to the minister, the leasing framework will significantly enhance fleet access for Nigerian carriers, allowing them to compete more effectively with international airlines that currently dominate the market, while also extending its services to operators across West Africa and the broader African continent.
The initiative has already attracted interest from both local and international investors, and is expected to strengthen the aviation sector, enhance airline capacity, and improve overall efficiency in the industry.
