After years of setbacks, will the leasing initiative end Nigeria's aircraft crisis?

Written by: Mohammed Omran 

Amid attempts to rescue local airlines from funding crises and aircraft shortages, Nigerian government In collaboration with the African Development Bank, a new aircraft leasing initiative has been launched, in a move described as a major transformation that could reshape the future of the country's aviation sector after years of setbacks and challenges.

Nigeria announces new aviation project

The Nigerian federal government has taken steps to address the long-standing challenges faced by Nigerian airlines in aircraft acquisition, through plans to partner with the African Development Bank on a new national aircraft leasing initiative.

Nigerian Minister of Aviation and Aerospace Development, Festus Kyamu, unveiled the Nigerian Aircraft Leasing Company during a stakeholder meeting in Abuja, describing the initiative as a major achievement for local airlines that have struggled to access aircraft and financing.

New aircraft leasing initiative

In a statement, Kyamu said the Nigerian government remains committed to supporting local airlines through practical reforms rather than political promises, explaining: ”We are not just talking; we have done our best over the past three years, and we recognize that there are many Aircraft Operator Certificate holders who are finding it difficult to get started.”.

He explained that the aircraft leasing company was conceived as part of Nigeria’s aviation roadmap since 2015, but suffered delays due to the country’s compliance issues with the Cape Town Convention, an international framework that protects aircraft financiers and lessors. He noted that Nigeria’s recent resolution of compliance issues has restored confidence among international leasing companies and investors, paving the way for the project to begin.

He continued, “With the Cape Town Agreement issues now resolved, the path is clearer for us to launch this initiative and give Nigerian airlines easier access to aircraft leasing opportunities.”.

Kiamu stressed that participation in the leasing company would not be mandatory for airlines, explaining that the initiative was strictly designed as a special purpose entity to support operators, not compete with them.

He pointed out that those managing this initiative are not competitors to airlines, stressing that it is a special purpose vehicle established to facilitate aircraft leasing for Nigerian airlines, and they do not apply for aircraft operating certificates.

The minister also revealed that “the African Development Bank was already in the process of signing a memorandum of understanding with Nigeria on this initiative,” a development, he says, that reflects growing international confidence in Nigeria’s aviation reforms.

He also revealed that President Paula Tinubu had directed four ministries – Aviation and Space Development, Finance, Trade and Industry, and Justice – to work together on developing the operational structure of the leasing company.

According to Kiamu, the government guarantees under this arrangement will only cover aircraft recovery obligations, while the initiative itself will remain private sector-driven to ensure efficiency and sustainability.

In response, on behalf of the airlines, the CEO of Ibom Air, Mr. George Orisi, praised the minister for what he described as bold reforms capable of transforming the aviation industry.

Orisi said: “If you can accomplish this successfully, Your Excellency, your administration will remain virtually untouchable in the field of Nigerian aviation,” explaining that the aircraft leasing initiative was “a very welcome and long-awaited development.”.