The initiative was presented by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a stakeholders’ meeting held in Abuja and attended by airline operators, aviation regulators, investors and other industry stakeholders.
According to Keyamo, the establishment of the leasing company forms part of broader government efforts aimed at strengthening Nigeria’s aviation industry through policies designed to support the growth, sustainability and competitiveness of local airlines.
He explained that one of the major obstacles confronting Nigerian carriers has been limited access to aircraft leasing opportunities, which often forces operators to depend on expensive financing arrangements and foreign leasing markets.
The minister noted that resolving Nigeria’s compliance issues with the Cape Town Convention created the foundation for the launch of the leasing initiative.
The Cape Town Convention is an international treaty that provides legal protection for aircraft financiers and leasing companies, making it easier and safer for airlines to acquire aircraft through international financing and leasing arrangements.
Keyamo stated that improved compliance with the convention has helped restore investor confidence in Nigeria’s aviation sector and created a more attractive environment for aircraft financing.
He explained that the Nigeria Aircraft Leasing Company would operate as a Special Purpose Vehicle (SPV), specifically structured to provide local airlines with easier and more affordable access to leased aircraft.
According to him, the company is not being established to compete with existing airline operators but rather to support and strengthen their operations by improving access to aviation assets.
The minister also stressed that the initiative would be largely private sector-driven, with government involvement limited mainly to guarantees and enabling support mechanisms designed to attract investors.
Industry stakeholders at the meeting described the project as a potentially significant step toward reducing operational difficulties faced by domestic airlines, many of which struggle with fleet expansion due to high leasing costs and limited financing options.
Reacting to the development, Chief Executive Officer of Ibom Air, George Uriesi, praised the minister for ongoing reforms within the aviation sector.
Uriesi described the aircraft leasing initiative as a long overdue intervention capable of improving airline operations, increasing fleet capacity and supporting the long-term stability of Nigeria’s aviation industry.
Stakeholders also noted that easier access to leased aircraft could help local airlines improve route connectivity, enhance operational efficiency and compete more effectively within regional and international markets.
Analysts believe the success of the initiative will largely depend on investor confidence, regulatory stability and the ability of the leasing company to maintain transparent and commercially.