Nigeria Advances Plan for New National Aircraft Leasing Company
Nigeria is accelerating efforts to establish a national aircraft leasing company as part of its long-term aviation development strategy, according to Aviation Minister Festus Keyamo. The initiative aims to ease aircraft acquisition challenges for domestic airlines, many of which struggle with high leasing costs and limited access to financing.
Speaking in Lagos on November 7 during the arrival of Air Peace’s newly dry-leased B737-700 (EI-HRN) from AerCap, Keyamo said the government is in advanced discussions with “global investors” to launch the long-delayed venture. He explained that the leasing company will operate through a public-private partnership, with both the federal government and local airlines contributing capital. The structure would include a sovereign guarantee to help Nigerian carriers secure better aircraft financing terms from international lessors.
Keyamo said the government will soon engage aircraft manufacturers and global leasing firms, noting that the initiative demonstrates a renewed commitment to strengthening local carriers and expanding Nigeria’s aviation sector. He added that recent reforms—now backed by law—are intended to boost investor confidence and reduce perceived risks for lessors.
A major milestone has been the full implementation of the Irrevocable Deregistration and Export Request Authorisation (IDERA), a key safeguard under the Cape Town Convention. IDERA ensures quick deregistration and export of leased aircraft in cases of default, addressing long-standing concerns over weak enforcement, judicial delays, and contractual disputes that previously discouraged global lessors from operating in Nigeria.
Industry reports note that Nigeria’s alignment with the Cape Town Convention has already begun reducing risk premiums, offering hope for more affordable dry-lease agreements. Investors from Dubai, London, and other major financial hubs have reportedly expressed interest in participating in the new leasing venture.
In May, the federal government also introduced revised insurance regulations for leased aircraft to harmonize with Cape Town Convention standards, further improving the operating environment for local airlines. Additional legal practice directions issued in September 2024 reinforced compliance requirements, helping pave the way for the national leasing company to move from concept to reality.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com