Minister of Aviation and Aerospace Development, Festus Keyamo, announced the plan on Friday during the arrival ceremony of Air Peace’s first dry-leased Boeing 737-700 at the Murtala Muhammed International Airport, Lagos — a milestone event that signaled renewed international confidence in Nigeria’s aviation market.
According to Keyamo, the proposed leasing company will serve as an intermediary between Nigerian carriers, global lessors, and aircraft manufacturers, providing local operators with easier access to modern fleets under favorable terms. The initiative, he explained, aligns with President Bola Tinubu’s vision of transforming Nigeria into a major aviation hub in Africa.
“We have put in place plans to start a Nigerian aircraft leasing company. Discussions have been held with the Minister of Finance and investment teams from Dubai and Dublin. We already have interested investors, and the structure is being incorporated,” Keyamo revealed.
Restoring Trust and Redefining Access
Until recently, Nigerian airlines were excluded from international dry lease arrangements due to trust and contractual concerns. Lessors often cited the country’s weak legal protections and history of defaults as reasons for caution, forcing local carriers to rely on costlier wet leases — agreements that include crew, insurance, and maintenance.
The situation began to change after the Federal Government, under Keyamo’s supervision, signed the Cape Town Practice Direction in 2024. The agreement provides a clear legal pathway for lessors to reclaim their aircraft in cases of breach, restoring investor confidence in Nigeria’s aviation sector.
Following the signing, Keyamo led a delegation of Nigerian operators to Dublin, where fresh negotiations with international lessors culminated in new leasing partnerships — including the Air Peace–AerCap deal that produced Nigeria’s first dry-leased aircraft in a decade.
“This has been part of the aviation roadmap for 15 years,” the minister said. “Previous governments attempted it without success, but we’re determined to make it one of this administration’s legacies. The structure will support local airlines and give them the tools to compete globally.”
Building a New Era for Local Operators
Keyamo emphasized that the leasing company would not only reduce dependence on foreign wet lease agreements but also strengthen domestic carriers’ fleet capacity and operational independence.
He added that the government’s aviation reform agenda has enjoyed broad support from all branches of government. “It’s been a long walk to get to this point. From the President to the Vice President, the Judiciary, and the National Assembly, every arm of government has bought into this mission,” he said.
Industry Endorsement and Optimism
Speaking at the same event, Air Peace Chairman, Dr. Allen Onyema, praised the minister’s proactive leadership, describing him as a “game changer” for Nigerian aviation.
“Before now, Nigerian airlines were struggling to access equipment. The minister identified the gap and fixed it. He changed the narrative that we lacked capacity. Today, Air Peace stands as proof that Nigerian carriers can meet global standards,” Onyema said.
Onyema assured that the airline would uphold world-class maintenance and operational standards to sustain the confidence of international partners. “We represent Nigeria’s aviation ambitions. With the support of government and the Nigerian people, we will not fail,” he added.
A Turning Point for Nigerian Aviation
Dignitaries at the event included NCAA Director-General Chris Najomo, FAAN Managing Director Bunmi Kuku, Irish Ambassador Peter Ryan, and Fidelity Bank’s Executive Director of Risk Management, Kevin Ugwuoke.
For many industry observers, the proposed leasing company and Air Peace’s landmark dry lease represent a turning point for Nigeria’s aviation sector — one that could expand fleet availability, reduce costs, and position the country as a regional aviation powerhouse.
As Keyamo concluded, “Nigeria now has both the rules and the market. What we’re building is a system of trust — one that ensures our local airlines can finally soar on their own wings.”