Nigeria’s Federal Executive Council (FEC), chaired by President Bola Tinubu, has approved the creation of a Nigeria Aircraft Leasing Company as part of efforts to strengthen the country’s aviation sector.
Minister of Aviation and Aerospace Development Festus Keyamo said the new entity will operate as a Special Purpose Vehicle (SPV), fully funded by private investors and run on a commercial basis, with no direct financial obligation on the federal government.
According to the minister, the government’s role will primarily involve providing sovereign guarantees to international aircraft lessors and manufacturers. This is expected to reduce investment risks by assuring asset repossession in case of default, thereby making it easier for local airlines to access aircraft.
He added that the government will still hold equity in the company through the Ministry of Finance Incorporated, ensuring strategic oversight while allowing private-sector efficiency.
The initiative is designed to serve as a central leasing platform, enabling Nigerian airlines to lease aircraft locally through a credible, government-backed entity rather than relying heavily on foreign leasing arrangements.
Keyamo noted that the move aligns with the administration’s broader plan to boost private sector participation, improve infrastructure, and position Nigeria as a major aviation hub in Africa.
He described the project as a strategic intervention aimed at driving industry growth, creating jobs, and ensuring long-term sustainability within Nigeria’s aviation ecosystem, while also enhancing the country’s competitiveness in the global aviation market.