How Nigeria Rebuilt Its International Aviation Relations–Keyamo

Nigeria has made significant progress in rebuilding its international aviation relationships through the clearance of approximately $850 million in blocked airline funds, the restoration of Emirates’ flights and reforms that have reopened access to international aircraft leasing channels, the Minister of Aviation and Aerospace Development, Festus Keyamo, has said.

Keyamo said the developments, driven by foreign exchange interventions, diplomatic engagements, regulatory reforms and renewed international partnerships, had helped restore confidence among foreign airlines, aircraft lessors, aircraft manufacturers and other international aviation stakeholders.

Three years into President Bola Ahmed Tinubu’s administration, the minister said the government had made progress in addressing longstanding financial, legal and regulatory challenges that previously undermined Nigeria’s credibility in the international aviation market.

One of the significant developments was the return of Emirates to Nigeria on October 1, 2024, after nearly two years of suspended operations between Nigeria and the United Arab Emirates (UAE).

An Emirates Boeing 777-300ER landed at the Murtala Muhammed International Airport, Lagos, marking the restoration of the airline’s services following a dispute over the repatriation of its earnings from Nigeria.

The airline had suspended operations in November 2022 after experiencing difficulties transferring revenue generated from ticket sales to the UAE. Other international carriers also encountered similar challenges, raising concerns about the ability of foreign airlines to access funds legitimately earned in the Nigerian market.

The dispute formed part of a wider foreign exchange crisis that affected international airlines operating in the country. By June 2023, approximately $850 million belonging to foreign airlines had been trapped in Nigeria, according to the International Air Transport Association (IATA).

For international carriers, the situation raised concerns about the commercial viability of their Nigerian operations, as they generated revenue in local currencies but met major financial obligations, including aircraft leasing, insurance, maintenance and spare parts, in dollars and other convertible currencies.

The inability to repatriate their earnings therefore threatened their operations and weakened confidence in Nigeria as an aviation investment destination.

However, Keyamo explained that the federal government’s subsequent foreign exchange interventions and diplomatic engagements helped address the crisis and restore confidence among international operators.

By April 2024, IATA reported that 98 per cent of the previously blocked $850 million had been cleared, leaving approximately $19 million undergoing verification.

Although the clearance resulted from broader government financial interventions and was not solely an achievement of the Aviation Ministry, Keyamo said resolving the backlog was important to rebuilding Nigeria’s international aviation relationships.

He said the development demonstrated the government’s commitment to addressing the financial concerns of foreign airlines and improving the country’s standing among global aviation operators.

Beyond the clearance of blocked funds, Keyamo said the ministry had pursued reforms aimed at improving Nigerian airlines’ access to the international aircraft leasing market.

For several years, Nigerian airlines faced difficulties securing competitive aircraft leasing arrangements because of concerns among international lessors about contract enforcement, creditors’ rights and aircraft repossession procedures.

The concerns restricted dry-lease opportunities, complicated fleet expansion and increased financing costs for domestic operators.

Keyamo noted that the ministry worked with judicial and regulatory authorities to strengthen the implementation of the Cape Town Convention, an international framework designed to protect the interests of aircraft financiers and lessors.

The reforms included a Federal High Court Practice Direction and clearer procedures governing aircraft de-registration and export authorisations.

Nigeria’s score on the Aviation Working Group’s Cape Town Convention Compliance Index rose from approximately 49 per cent to 70.5 per cent in September 2024 and subsequently increased to 75.5 per cent the following month.

In October 2024, Nigeria was also removed from the group’s watchlist of non-compliant jurisdictions.

According to the minister, the reforms were intended to address the concerns of international lessors and provide greater legal certainty for aircraft financing and leasing transactions involving Nigerian airlines.

The commercial implications became evident in November 2025 when Air Peace took delivery of a dry-leased Boeing 737-700 from AerCap, one of the world’s largest aircraft leasing companies.

The transaction demonstrated the potential benefits of improved legal certainty for Nigerian airlines seeking aircraft from international lessors.

Keyamo said improving the country’s leasing framework was important to expanding fleet acquisition opportunities, supporting airline growth and strengthening the competitiveness of domestic operators.

Wider access to competitive leasing arrangements could also support fleet renewal, route expansion and reduce the financial burden associated with outright aircraft acquisition.

However, the challenge remains ensuring that the opportunities created by the reforms become accessible to more Nigerian airlines rather than being limited to isolated transactions.

The minister also said the government had strengthened engagement with international aircraft manufacturers, including Boeing and Airbus, as part of efforts to improve technical capacity and expand investment opportunities in the aviation sector.

In August 2024, Keyamo signed a memorandum of understanding with Boeing in Seattle, establishing a framework for cooperation in aircraft acquisition, maintenance, training and aviation development.

Engagements with Airbus and other international industry stakeholders have similarly focused on financing opportunities, technical support and the development of Nigeria’s aviation capacity.

Keyamo pointed out that the partnerships were important because airline competitiveness depended on more than aircraft acquisition, stressing the need for maintenance facilities, skilled personnel, technical support and reliable access to spare parts.

Nigeria’s dependence on overseas aircraft maintenance exposes domestic airlines to foreign exchange pressures, high technical costs and extended aircraft downtime.

According to the minister’s reform objectives, strengthening local maintenance, repair and overhaul capacity would help reduce dependence on overseas technical services, create skilled employment and retain more aviation expenditure within the domestic economy.

However, the effectiveness of the partnerships will ultimately depend on their translation into measurable outcomes, including aircraft deliveries, financing transactions, training programmes, technology transfer and operational maintenance facilities.

On international route access, Keyamo said the government had also pursued negotiations aimed at securing better opportunities for Nigerian airlines in foreign markets.

Air Peace commenced Lagos-London Gatwick operations in March 2024, expanding the presence of indigenous airlines in the international aviation market.

However, the airline’s efforts to secure access to Heathrow Airport generated a diplomatic dispute over airport slots and the implementation of bilateral air services arrangements.

In August 2024, Keyamo raised concerns with British authorities over what he described as unequal access for Nigerian carriers.

The minister invoked the principle of reciprocity, arguing that Nigerian airlines should enjoy fair opportunities in foreign markets whose carriers had extensive access to Nigeria.

In June 2025, Keyamo announced that Nigeria had secured a Heathrow slot for Air Peace, although the announcement did not establish that scheduled operations to the airport had commenced.

He said securing better international route opportunities for indigenous carriers was important to strengthening their competitiveness and expanding Nigeria’s presence in the global aviation market.

Meanwhile, Nigeria’s aviation safety oversight performance has also recorded improvements.

In April 2026, the Nigerian Civil Aviation Authority announced a preliminary 91.45 per cent Effective Implementation score following an International Civil Aviation Organisation Coordinated Validation Mission.

The score measures the extent to which a country implements international aviation safety oversight requirements and assesses the effectiveness of its regulatory framework.

The reported result represented an improvement in Nigeria’s regulatory performance and placed the country above the published global average, although the preliminary score remained subject to further validation.

Keyamo said improved regulatory performance was important to reinforcing international confidence in Nigeria’s aviation industry and strengthening the country’s relationship with airlines, aircraft manufacturers, insurers, financiers and investors.

He noted that maintaining the improvement would require effective inspections, competent technical personnel, adequate institutional capacity and consistent enforcement of international aviation standards.

Despite the developments, Nigerian airlines continue to face significant financial and operational challenges.

Most domestic carriers earn revenue in naira while meeting major obligations, including aircraft leasing, insurance, maintenance, spare parts and other technical services, largely in foreign currencies.

This exposes them to exchange rate fluctuations and increases the cost of sustaining airline operations.

Fuel price volatility, high financing costs and limited domestic maintenance facilities have also continued to put pressure on operators.

In April 2026, rising aviation fuel prices prompted airline operators to threaten a nationwide shutdown before government intervention helped avert the disruption.

The development highlighted the vulnerability of domestic airlines to increases in critical operating costs and the need for reforms that address the industry’s domestic operating environment.

Keyamo’s international aviation reform agenda therefore faces the additional challenge of ensuring that improved access to aircraft leasing, stronger international partnerships and restored confidence among foreign operators translate into more sustainable conditions for Nigerian airlines.

Improved leasing access can ease fleet acquisition, but cannot independently resolve fuel price volatility, foreign exchange exposure or high maintenance costs. Similarly, restored international services and stronger diplomatic relationships do not automatically guarantee the profitability of domestic carriers.

Industry observers have maintained that improved access to aircraft leasing, stronger international partnerships and restored confidence among foreign operators must translate into lower operating costs, increased investment and more sustainable airline businesses.

Nigeria’s aviation market offers significant opportunities because of its large population, strategic geographical position and potential to serve as a regional aviation hub.

Keyamo said sustaining the progress would require predictable regulations, effective safety oversight, improved airport and maintenance infrastructure, commercial discipline and a more competitive operating environment.

The clearance of blocked airline funds, Emirates’ return, improvements in the Cape Town Convention compliance framework and the AerCap-Air Peace leasing transaction represent important developments in rebuilding Nigeria’s international aviation relationships.

The government’s partnerships with aircraft manufacturers and negotiations over international route access have also created opportunities for stronger technical cooperation, investment and improved connectivity.

However, the greater challenge, according to the minister’s reform objectives, is to translate improved international relationships into tangible economic benefits for the aviation industry.

This would require ensuring that renewed confidence among international airlines, aircraft lessors and manufacturers results in increased investment, efficient operations, competitive domestic carriers and stronger passenger connectivity.

While Nigeria has made progress in repairing relationships previously strained by financial disputes, legal uncertainties and regulatory concerns, the long-term success of the reforms will depend on whether they produce an aviation industry capable of competing sustainably beyond the country’s borders.