Nigeria Clears 98% Trapped Funds, Eyes Aviation Investment Surge – Keyamo

The minister of Aviation and Aerospace Development, Festus Keyamo, on Wednesday said Nigeria has cleared 98 per cent of previously trapped airline funds, a move aimed at restoring investor confidence and unlocking fresh investment into the aviation sector.

Keyamo disclosed this at the maiden edition of the Nigeria Aircraft Acquisition and Investment Summit held in Lagos, where he outlined the federal government’s broader strategy to reposition the industry for growth.

According to him, the clearance of blocked funds signals Nigeria’s commitment to ensuring liquidity, convertibility, and ease of repatriation, key factors for attracting global airlines and financiers.
The minister, however, stressed that beyond financial reforms, Nigeria’s aviation strategy must evolve past passenger traffic growth to include the development of cargo hubs, cold-chain systems, and smart border processes.

“It means our aviation strategy must extend beyond passenger traffic improvements to the deliberate development of cargo hubs, cold-chain systems, smart border processes, and airport ecosystems that can support trade, manufacturing, agribusiness, pharmaceuticals, and digital commerce,” he said.
He added that airports in Lagos, Abuja, Kano, and Port Harcourt must be repositioned as integrated economic platforms rather than mere transit terminals.

“Aviation is not only about passenger mobility. It is about export competitiveness, pharmaceutical logistics, perishables, e-commerce, high-value manufacturing, and time-sensitive trade,” Keyamo stated.
He noted that increasing demand for air travel across Africa, driven by rapid urbanisation and a growing middle class, places Nigeria in a strong position to benefit from the next wave of global aviation expansion.

Citing projections by Airbus and Boeing, Keyamo said Africa would require between 1,205 and 1,460 new aircraft over the next two decades, along with an estimated 76,000 aviation personnel.

“These projections show that the centre of gravity of aviation growth is shifting toward emerging markets, and Nigeria, by its scale and economic relevance, must be a principal beneficiary,” he said.

Despite the positive outlook, the minister identified limited access to affordable aircraft financing as a major constraint for Nigerian airlines, affecting fleet renewal, route expansion, and overall competitiveness.

He said the administration of Bola Tinubu is addressing this challenge by treating aviation financing as a national priority.

Keyamo explained that the government has taken deliberate steps to de-risk aviation investment, particularly through improved implementation of the Cape Town Convention and Aircraft Protocol.
He noted that Nigeria issued the Federal High Court Practice Direction on the Convention in September 2024, followed by the Irrevocable De-Registration and Export Request Authorisation (IDERA) Advisory Circular in October 2024 to strengthen aircraft leasing processes.

“These reforms enhance investor confidence, reduce leasing costs, and improve access to dry-lease aircraft for local airlines,” he said.

The minister reiterated that the combination of regulatory reforms and the resolution of trapped funds is positioning Nigeria as a more attractive destination for aviation investment.
“Capital does not simply chase opportunity; it chases bankable certainty. Nigeria has worked to restore that certainty,” he said.

“These are some of the ways we are unlocking capital, by aligning law, regulation, financial credibility, and investor protection.”