Federal Government Approves National Aircraft Leasing Firm To Cut Costs

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Industry stakeholders believe the move could strengthen airline capacity, reduce operational costs, and improve the competitiveness of Nigerian carriers in the global aviation market.