Regulatory Reforms Boost Confidence—but Not Capacity
The AWG—a global aviation standards body comprising major aircraft manufacturers, financiers, and lessors—removed Nigeria from its compliance watchlist following improvements in the country’s aviation legal and insurance frameworks. Nigeria’s compliance score rose sharply from 49% to 75.5% last year, signaling better alignment with international best practices in aircraft financing and leasing.
AON spokesperson, Professor Obiora Okonkwo, acknowledged these improvements and the renewed willingness of international lessors to engage with Nigerian carriers. He pointed out that prior distrust, which had affected leasing opportunities, was often not directly the fault of domestic operators.
“Some of the operators who were victims of the decision of international lessors might not necessarily have been involved in the act that led to that,” Okonkwo said. “Thank God that today, international lessors have lifted the ban placed on Nigeria to dry lease.”
He added that changes to Nigeria’s aviation insurance policy and the introduction of a new Cape Town Convention (CTC) practice direction were part of the reforms that helped restore international confidence.
Aircraft Shortage Frustrates Momentum
However, Okonkwo explained that Nigerian carriers are now running into a global supply crisis. The industry-wide shortage of new and used aircraft—linked to pandemic-era production delays, regulatory hurdles with aircraft models like the Boeing MAX, and technical issues affecting newer engine models—means that even eager lessors are unable to meet demand.
“As a matter of fact, you will find legacy operators who ordinarily would not operate ACMI [Aircraft, Crew, Maintenance, and Insurance] even struggling with us for ACMI,” he noted. “This has made the cost of everything very high.”
The current waitlist for aircraft delivery has ballooned to over 17,000 globally, according to the International Air Transport Association (IATA), with estimated lead times stretching up to 14 years. The figure marks a significant jump from pre-pandemic levels, which hovered around 10,000–11,000.
Leasing Costs Rise, Pressure Mounts on Operators
This extended backlog has had a ripple effect on leasing costs. Larger airlines and lessors are holding onto aircraft longer than originally planned, causing a delay in fleet turnover and squeezing availability in the secondary market. As a result, Nigerian operators looking to lease planes face stiffer competition and rising prices.
Okonkwo explained that many lease contracts set to expire last year have now been extended, adding further strain to global supply and reducing the number of aircraft re-entering circulation.
“There are a lot of lessors happy to do business with Nigeria, but the aircraft they are expecting to come back to their inventory is still being held on,” he said.
Looking Ahead
While the regulatory environment in Nigeria has seen meaningful improvements, the benefits of these reforms may take time to fully materialize unless the global supply chain bottleneck eases. For now, Nigerian airlines remain caught in a broader industry struggle, limiting their ability to expand fleets or reduce operational costs.
Nevertheless, AON remains optimistic that the groundwork laid in recent years will eventually pay off, positioning domestic airlines to take full advantage when aircraft availability improves.