The Minister of Aviation and Aerospace Development, Festus Keyamo, has unveiled the Nigeria Aircraft Leasing Company, a new Special Purpose Vehicle intended to tackle aircraft acquisition challenges facing domestic airlines by giving them easier access to leasing opportunities.
Keyamo presented the initiative during a stakeholders' meeting in Abuja attended by airline operators, investors, and regulators, describing it as part of the Federal Government's commitment to strengthening indigenous carriers through policies aimed at long-term growth and sustainability. He said resolving Nigeria's compliance issues under the Cape Town Convention, which governs the legal title and repossession rights over aircraft assets, had paved the way for the leasing company's launch, following the Federal Executive Council's approval of the plan in early May.
A Privately Funded Vehicle with Government Backing
According to Keyamo, the company will remain private sector-driven, with the government holding only a minor equity stake through the Ministry of Finance Incorporated and offering limited guarantees rather than direct investment. Those guarantees are intended to cover the legal title and safety status of leased aircraft along with repossession rights should a lessee default, reducing the perceived risk for international lessors and manufacturers. Keyamo said the company is designed to operate as a single, credible entity through which local airlines can lease aircraft globally, rather than competing with existing carriers or operators.
Industry Reaction
Ibom Air chief executive George Uriesi, speaking at the briefing where Keyamo unveiled the plan, welcomed the initiative as a long overdue development capable of easing constraints on fleet expansion for Nigerian carriers. Keyamo has since discussed the leasing company with the African Development Bank as part of potential collaboration under the bank's broader aviation financing programmes, and said the special purpose vehicle's incorporation was proceeding with global investor interest, though officials have not given a firm date for financial close.
