The Federal Government of Nigeria has approved the creation of a national aircraft leasing company in a move aimed at improving access to modern aircraft for domestic airlines and lowering operating costs across the country’s aviation sector.
The announcement was made by Festus Keyamo following a meeting of the Federal Executive Council, where the initiative received formal approval.
According to the minister, the proposed company represents a major step in reshaping how Nigerian airlines acquire and finance aircraft. He explained that the new structure is expected to address long-standing funding challenges that have made fleet expansion difficult for local carriers.
In a statement issued on Friday, Keyamo said the aircraft leasing company will operate as a private-sector-led Special Purpose Vehicle (SPV), while receiving strategic backing from the federal government.
He described the initiative as a major turning point for the aviation industry, noting that Nigerian airlines have for years struggled to secure aircraft on competitive commercial terms. Under the current arrangement, individual operators often negotiate directly with international leasing firms, a process that frequently comes with higher costs, tougher conditions, and limited flexibility.
The new platform is designed to change that model by introducing a centralised leasing system through which domestic carriers will be able to source aircraft more efficiently. By pooling access through one national structure, the government believes airlines will benefit from stronger bargaining power, more favourable financing arrangements, and easier access to modern fleets.
Keyamo said the broader goal is not only to support local airlines but also to position Nigeria as a leading centre for aviation financing on the African continent.
“This initiative is a game-changer for our aviation industry. It removes the long-standing barriers Nigerian airlines face in accessing aircraft on competitive terms and positions Nigeria as a hub for aviation financing in Africa,” he said.
The minister further explained that the federal government’s role will largely be supportive rather than operational. Through the Ministry of Finance Incorporated, the government will hold equity in the venture and earn revenue from the project without making direct financial contributions.
According to him, the main responsibility of government will be to provide sovereign guarantees that will strengthen investor confidence and provide assurance over asset security — an important factor in attracting long-term capital into the project.
“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.
The minister also disclosed that the initiative has already begun attracting interest from both domestic and international investors, a development that suggests early confidence in the project’s commercial viability.
Beyond serving Nigeria’s domestic aviation market, the leasing company is expected to extend its operations across West Africa and other parts of the continent. This wider regional outlook could position Nigeria as a strategic hub for aircraft leasing and aviation-related financial services.
Industry stakeholders say the move could deliver far-reaching benefits for the country’s aviation ecosystem. By improving access to aircraft financing, airlines may be able to expand their fleets, strengthen route networks, reduce operational expenses, and improve service delivery.
Analysts also believe the initiative could help make Nigerian carriers more competitive in the global aviation market, especially at a time when rising operational costs, currency pressures, and limited financing options continue to challenge the sector.
With the approval now secured, attention is expected to shift toward implementation, investor participation, and the establishment of the institutional framework that will drive the project forward. If successfully executed, the national aircraft leasing company could become one of the most significant reforms in Nigeria’s aviation industry in recent years.
