Flight delays and cancellations may soon become a thing of the past as the federal government has announced plans to establish a Nigerian aircraft leasing company to support airline operators and improve air transportation in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday in Abuja during a meeting with airline operators and aviation stakeholders following the approval granted by the Federal Executive Council for the initiative.
Keyamo explained that the proposed company would operate as a Special Purpose Vehicle (SPV) backed strategically by the Federal Government and funded largely by private investors, development finance institutions and international partners.
According to the minister, the initiative is designed to help Nigerian airline operators acquire or lease aircraft locally through one credible platform instead of going through lengthy and expensive foreign leasing procedures.
He noted that the move would also help airlines expand their fleets, reduce operational difficulties, cut down flight delays and cancellations, and improve service delivery to passengers across the country.
“Once they acquire more aircraft, it helps to cut down on the constant cancellation of flights you hear in Nigeria. There’s no private operator who is happy to cancel flights because he is losing money,” Keyamo said.
The minister explained that under the arrangement, airline operators would be able to lease aircraft in naira at lower interest rates, thereby reducing the pressure caused by foreign exchange fluctuations and easing the financial burden on local carriers.
He added that the initiative would also reduce pressure on the demand for dollars in the aviation sector, thereby reducing exposure to volatile foreign exchange rates
Keyamo further stated that the Federal Government would not directly finance the company but would provide sovereign guarantees for the safety and repossession of aircraft, a move aimed at giving confidence to international financiers and leasing firms.
On the area of investment, He disclosed that the African Development Bank has already keyed into the initiative, with Nigeria emerging as one of the pilot countries under the bank’s aviation financing support programme.
- “The African Development Bank has keyed into this because they have an integrated programme for this kind of thing in Africa, and Nigeria is now one of their pilot countries.”
Keyamo further assured Nigerians that the initiative would have direct benefits for passengers as increased aircraft availability would improve scheduling, reduce delays during peak travel periods, and provide more reliable flight operations across the country.
Speaking on behalf of the airline operators, the Managing Director and Chief Executive Officer of Ibom Air, George Uriesi, described the development as a major relief for local airlines, which have struggled for years with high aircraft acquisition and financing costs.
According to him, Nigerian operators often pay significantly higher interest rates for aircraft compared to foreign competitors, making operations more difficult and expensive.
“What he has done is untie our hands by providing us with a Nigerian leasing company that will give us access to aircraft at reduced interest rates and with naira repayments,” Uriesi said.
He added that easier access to aircraft would help airlines improve flight availability, reduce cancellations, strengthen competition within the sector, and ultimately lead to better services and more affordable ticket prices for Nigerians.
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