AWC Aviation Desk
Abuja, May 2026 — The Federal Government has approved the establishment of a Nigeria Aircraft Leasing Company in a move aimed at strengthening the country’s aviation sector and easing operational challenges faced by domestic airlines.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the approval following a meeting of the Federal Executive Council (FEC), describing the initiative as a major structural reform in aircraft acquisition and financing in Nigeria’s aviation industry.
According to the minister, the proposed company will operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing, but without direct financial obligation on the Federal Government. Instead, the government will provide sovereign guarantees to reduce risks for international lessors and financiers.
Keyamo noted that the initiative is designed to address longstanding challenges faced by Nigerian airlines in accessing aircraft on competitive terms. He described it as a “game-changer” that will enable domestic carriers to acquire modern fleets through a centralized, structured system rather than negotiating individually with foreign lessors.
Industry analysts say the development could significantly reduce airlines’ dependence on foreign leasing companies, lower operational costs, and improve fleet availability for local operators. It is also expected to enhance Nigeria’s position as a potential aviation financing hub in Africa.
The approval builds on earlier government efforts to reform the aviation sector, including compliance with international leasing frameworks and policies aimed at improving access to aircraft financing for domestic airlines.
Stakeholders have welcomed the initiative, noting that if effectively implemented, it could stabilise the aviation sector, boost capacity for local airlines, and support the growth of Nigeria’s air transport industry.
