FG Plans National Aircraft Leasing Company to Support Domestic Airlines,.Explains Keyamo

The Federal Government has announced plans to establish a national aircraft leasing company to make fleet acquisition easier and more affordable for Nigerian airlines

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Friday while unveiling a newly leased Boeing 737-700 aircraft for Air Peace at the Murtala Muhammed Airport in Lagos According to the minister, discussions are already at an advanced stage with international investors to set up the new leasing firm, which will provide Nigerian carriers access to modern aircraft through flexible leasing arrangements rather than expensive outright purchases We have secured investors who are willing to partner with us to establish a national aircraft leasing company,” Keyamo said. “This will help local airlines overcome the huge financial barriers to acquiring and maintaining modern aircraft He explained that the initiative is part of President Bola Tinubu’s broader plan to strengthen Nigeria’s aviation sector, boost private participation, and position the country as the regional hub for air transport in West Africa The leasing company, Keyamo said, would function like major global lessors in Dublin, Dubai, and other aviation hubs — purchasing aircraft and leasing them to Nigerian airlines under favourable terms. He noted that this model would allow smaller carriers to expand operations, maintain regular schedules, and improve safety standards Industry experts have welcomed the move, saying it could help address one of the biggest challenges facing Nigerian airlines — the high cost of fleet renewal and limited access to foreign credit They, however, cautioned that the success of the initiative will depend on strong regulatory frameworks, transparent governance, and proper risk management structures to ensure investor confidence The aviation minister added that details of the leasing company’s structure, capitalization, and ownership model will be released soon after final consultations with key stakeholders and potential partners Our goal is to provide a sustainable financing solution for our domestic airlines and reduce their dependence on foreign lessors,” Keyamo said. “With this step, we are building the foundation for a stronger and more competitive aviation industry in Nigeria The planned national leasing company is expected to serve as a cornerstone of Nigeria’s efforts to modernize its aviation infrastructure, enhance safety compliance, and make local airlines more globally competitive.