(The Minister of Aviation and Aerospace Development, Festus Keyamo. Photo Credit: Premuim Times)
The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that Nigeria’s proposed aircraft leasing company will enable local airlines to acquire aircraft through domestic arrangements, allowing them to make payments in naira rather than dollars.
Keyamo made this known while speaking on the sidelines of the inaugural African Air Transport Conference in Lomé, Togo.
According to the minister, the proposed Nigeria Aircraft Leasing Company would be privately funded, though backed by government guarantees designed to attract investors and minimise risks for aircraft owners and financiers.
He explained that the initiative is aimed at helping local airlines overcome one of their most pressing challenges, which is gaining access to aircraft on affordable terms.
He noted that the federal government would retain a modest stake in the company, owing to the sovereign guarantees it intends to provide.
On government support, Keyamo revealed that President Bola Tinubu had already approved the initiative, with discussions currently ongoing with prospective investors.
He added that the company could enjoy tax holidays and other incentives intended to draw investment, explaining that the government guarantees would offer reassurance to aircraft lessors and creditors while reducing the risks tied to financing transactions within Nigeria, describing it as a significant de-risking factor for lessors and creditors.
The minister also pointed to Nigeria’s implementation of the Cape Town Convention and the Irrevocable Deregistration Export Request Authorisation, which permits aircraft to be deregistered and exported within a specified timeframe should operators default on their obligations.
Speaking on the naira payment arrangement, Keyamo said one of the major advantages of the proposed leasing company is that Nigerian airlines would be able to conduct transactions in naira.
He noted that many airlines currently rely on sourcing dollars to meet lease obligations to foreign aircraft owners, a situation that exposes them to exchange rate volatility and foreign currency shortages.
Under the new structure, he explained, airlines would deal directly with the local leasing company, while the responsibility for managing foreign currency obligations would shift to the company itself, allowing airlines to transact in naira at a local rate.
He added that this arrangement would help ease financial pressure on airlines and make aircraft acquisition more accessible, while clarifying that participation in the scheme would not be mandatory, as airlines would still be free to seek aircraft leases elsewhere should they find better terms.
Looking ahead, Keyamo said the long-term vision is to extend the platform beyond Nigeria, eventually expanding its reach across West and Central Africa, with the goal of establishing it as a leasing platform for the entire African continent.