Nigeria Launches Aircraft Leasing Company with AfDB

Nigerian airlines have long faced a frustrating problem: getting access to planes is incredibly difficult and expensive. Now the Federal Government and African Development Bank are stepping in with a solution that could transform the country's aviation industry.

Minister of Aviation Festus Keyamo announced the Nigeria Aircraft Leasing Company this week, describing it as a breakthrough for local carriers who have struggled for years to find affordable aircraft and financing options.

The initiative has roots going back to 2015, but Nigeria's compliance issues with the Cape Town Convention kept it grounded. This international framework protects aircraft financiers and lessors, and without proper compliance, international leasing firms simply wouldn't do business with Nigerian airlines.

That roadblock is now cleared. Nigeria recently resolved its Cape Town Convention compliance issues, restoring confidence among international investors and opening the door for this long-awaited project to take off.

The leasing company will operate as a Special Purpose Vehicle, meaning it's designed purely to help airlines access planes without competing against them. Participation will be voluntary, and the company won't be applying for its own Air Operator Certificate.

Four government ministries are working together to develop the operational structure, following direct orders from President Bola Tinubu. The government will only guarantee aircraft repossession obligations, while keeping the initiative private sector driven to ensure efficiency.

The Ripple Effect

This development could reshape aviation across Nigeria and potentially serve as a model for other African nations facing similar challenges. When airlines can access aircraft more easily, they can expand routes, lower ticket prices, and connect more communities.

George Uriesi, CEO of Ibom Air, praised the initiative as capable of transforming the industry. "If you're able to pull this over successfully, Honourable Minister, your administration will remain almost unbeaten in Nigerian aviation," he told stakeholders at the Abuja meeting.

The African Development Bank is already finalizing a Memorandum of Understanding with Nigeria, signaling growing international confidence in the country's aviation reforms. For airlines that have held Air Operator Certificates but couldn't launch operations due to aircraft access challenges, this could finally be their moment to take flight.

After years of delays and false starts, Nigerian aviation is climbing toward clearer skies.