- Keyamo explained that the proposed company would function as a Special Purpose Vehicle driven by private sector participation
- He noted that the initiative is designed to address long-standing challenges faced by local airlines in securing aircraft under favourable terms
- He added that the move is expected to strengthen the aviation sector
The Federal Government has given approval for the creation of a national aircraft leasing company aimed at helping domestic airlines access modern fleets more easily.
Eko Hot Blog reports that the Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a Federal Executive Council meeting, describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.
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In a statement released on Friday, Keyamo explained that the proposed company would function as a Special Purpose Vehicle driven by private sector participation, with government support to boost investor confidence.
He noted that the initiative is designed to address long-standing challenges faced by local airlines in securing aircraft under favourable terms, adding that it could transform Nigeria into a key aviation financing hub in Africa.
According to the minister, the platform will allow airlines to obtain aircraft through a centralised system instead of negotiating individually with foreign leasing companies, which often comes with stricter conditions.
The government, he said, will provide backing through sovereign guarantees while allowing private investors to take the lead in operations.
He further explained that the project would be anchored through the Ministry of Finance Incorporated, enabling the government to hold equity and generate revenue without committing direct funding.
Keyamo revealed that the initiative has already attracted interest from both local and international investors and is expected to extend beyond Nigeria by offering leasing services to airlines across West Africa and other parts of the continent.
He added that the move is expected to strengthen the aviation sector, enhance airline capacity, and improve overall efficiency in the industry.
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