FG Mulls Nigerian‑Owned Aircraft Leasing Firms to Boost Local Airlines

The Federal Government of Nigeria has intensified efforts to establish Nigerian‑owned aircraft leasing companies to support the growth and modernization of domestic airlines.

Speaking at the 2025 FAAN National Aviation Conference in Lagos, the Minister of Aviation and Aerospace Development, Festus Keyamo, emphasized that local leasing firms would enhance access to modern aircraft and reduce the reliance of Nigerian carriers on international lessors According to Keyamo, the government plans to set up a national aircraft leasing company, with funding sourced from both public and private investors. The initiative will be backed by sovereign guarantees to encourage investment and provide local airlines with more favorable financing options. The move is expected to significantly lower operational costs for domestic carriers and enable fleet expansion. The Federal Government has also strengthened the legal and regulatory framework for aviation financing, including the revision of insurance regulations to accommodate locally leased aircraft. In addition, Nigeria’s compliance with the Cape Town Convention on aviation financing has improved, making it easier for domestic lessors to operate within a globally recognized legal framework Industry analysts have hailed the initiative as a major boost for the sector, noting that local leasing companies could save airlines millions of dollars annually while improving safety and efficiency. Airline operators, including major carriers, have expressed support for the plan, highlighting the potential for fleet modernization and enhanced competitiveness Beyond aircraft leasing, the government plans to invest in airport infrastructure and develop Maintenance, Repair, and Overhaul (MRO) hubs, as well as cargo and logistics facilities, further strengthening the country’s aviation ecosystem. Talks with aircraft manufacturers such as China’s COMAC are also underway to supply additional aircraft that could complement the new leasing strategy. While the initiative promises significant benefits, experts caution that establishing a domestic leasing company will require substantial capital and effective regulatory oversight. The success of the plan will depend on investor participation, airline demand, and the proper implementation of the legal and insurance reforms With these measures, the Federal Government aims to foster a self-sustaining aviation financing ecosystem in Nigeria, creating high-skill jobs, retaining capital within the country, and boosting the competitiveness of local airlines in the global market.