Airlines To Lease Aircraft In Naira Under New Financing Scheme

The Minister of Aviation and Aerospace Development, Festus Keyamo, says Nigeria’s planned aircraft leasing company will allow local airlines to acquire aircraft through domestic arrangements and make payments in naira instead of US dollars.

Keyamo disclosed this while speaking on the sidelines of the inaugural African Air Transport Conference in Lomé, Togo, noting that the initiative is designed to ease one of the aviation sector’s biggest challenges access to aircraft financing under favourable terms.

According to him, the proposed Nigeria Aircraft Leasing Company will be fully privately funded but supported by government-backed guarantees aimed at reducing risks for investors, aircraft owners, and financiers. He added that the Federal Government would retain a minority stake due to the sovereign guarantees involved.

President Bola Tinubu has already approved the initiative, while discussions with potential investors are ongoing, the minister said.

Keyamo explained that the structure would provide “de-risking” assurances for lessors and creditors, making aircraft financing more attractive within Nigeria.

He also said the company could benefit from tax incentives and other investment-friendly policies.

The minister highlighted Nigeria’s implementation of the Cape Town Convention and the Irrevocable Deregistration Export Request Authorisation (IDERA), which strengthens protections for aircraft lessors in the event of default.

Under the new framework, Nigerian airlines would be able to transact in naira with the local leasing company, while the firm would handle foreign currency obligations.

This, he said, would shield airlines from exchange rate volatility and dollar shortages that currently strain operations.

Keyamo stressed that participation in the scheme would be voluntary, allowing airlines to still source aircraft directly from international lessors if they secure better terms.

He further noted that the long-term vision is to expand the leasing platform beyond Nigeria to serve West and Central Africa, positioning it as a regional aviation financing hub.