By CHARLES CHIJIOKE
Nigeria’s Federal Executive Council (FEC) has approved the creation of a national aircraft leasing company aimed at tackling persistent fleet shortages facing domestic airlines.
The initiative, structured as a private sector-driven special purpose vehicle (SPV) with government backing, is expected to improve access to aircraft and strengthen operations across the country’s aviation industry.
Speaking after the council meeting chaired by President Bola Tinubu, the minister of aviation and aerospace development, Festus Keyamo, described the move as a strategic intervention to support largely private airline operators.
According to him, the federal government will play a supportive role by providing guarantees to financiers particularly on aircraft repossession and may also take equity in the new company.
“This is a game changer that you will see in the next few months,” Keyamo said.
The approval builds on earlier plans announced in November 2025, when the government disclosed ongoing talks with global investors to establish a leasing platform that would reduce the high cost and difficulty Nigerian airlines face in acquiring aircraft.
Industry stakeholders have long identified limited access to aircraft leasing as a major constraint on growth, with many operators struggling to expand routes or maintain schedules due to fleet limitations and financing hurdles.
The proposed company is also expected to complement Nigeria’s adoption of the Cape Town Convention (CTC) practice direction in 2024, which was designed to make it easier for local carriers to secure aircraft on dry lease from international lessors.
If successfully implemented, the leasing firm could lower operational costs, increase fleet availability, and improve reliability in the aviation sector. It may also attract more investment into the industry by reducing risks for foreign financiers.
However, analysts note that execution will be critical. Questions remain around governance structure, private sector participation, and how effectively the government can balance its dual role as guarantor and investor without crowding out competition.
The development signals a broader push by the administration to reform the aviation sector, with expectations that improved aircraft access could enhance connectivity, boost passenger confidence, and support economic activity tied to air transport.
