FG approves national aircraft leasing company

Nigeria's aviation sector is poised for a significant transformation with the Federal Government's approval of a national aircraft leasing company. This landmark decision, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, following a Federal Executive Council meeting, addresses a long-standing impediment for domestic airlines: the difficulty in accessing modern aircraft fleets on competitive terms.

Keyamo described the initiative as a "game-changer," emphasizing that the new company will operate as a private-sector-driven Special Purpose Vehicle, bolstered by government backing. This structure is designed to eliminate the hurdles airlines face in individual negotiations with international lessors. Instead, a centralized system will facilitate aircraft acquisition, making the process more efficient and cost-effective. The government's role will primarily involve providing sovereign guarantees to instill confidence in private investors, who will drive the project's operations.

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This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa.

Beyond bolstering Nigeria's own aviation industry, the initiative has continental ambitions. The leasing company is expected to extend its services to operators across West Africa and the broader African continent. This move not only aims to strengthen the sector domestically by improving airline capacity but also strategically positions Nigeria as a pivotal hub for aviation financing in Africa. With interest already piqued from both local and international investors, this forward-thinking policy promises to reshape the landscape of air travel and commerce in the region.

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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.