The Federal Government has approved the establishment of the Nigeria Aircraft Leasing Company in a move aimed at strengthening the country’s aviation sector and improving access to aircraft for local operators.
The approval was given by the Federal Executive Council (FEC), presided over by President Bola Tinubu, according to a statement by the Minister of Aviation and Aerospace Development, Festus Keyamo.
Keyamo confirmed that the decision followed the conclusion of the FEC meeting held on Friday.
He explained that the new company would operate as a Special Purpose Vehicle (SPV), fully privately funded and commercially run, with no direct financial burden on the Federal Government.
However, the government would provide strategic support, including sovereign guarantees to international lessors and aircraft manufacturers.
This, according to him, will help secure assets and reduce investment risks in the sector.
“And for this, the government holds equity through the Ministry of Finance Incorporated (MOFI),” Keyamo said.
He added that the initiative would allow Nigerian airlines to lease aircraft through a single credible platform backed by government assurance, improving access to modern aircraft and reducing operational constraints.
Keyamo said the initiative aligned with the Tinubu administration’s broader plan to increase private sector participation, improve aviation infrastructure, and position Nigeria as a key aviation hub in Africa.
“This is not just a policy decision; it is a strategic intervention aimed at unlocking growth, creating jobs, and ensuring long-term sustainability in our aviation ecosystem,” he stated.
He further described the project as a step toward strengthening the aviation value chain, improving regional air connectivity, and enhancing Nigeria’s competitiveness in the global aviation industry.
“The establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain, fostering regional connectivity, and enhancing Nigeria’s competitiveness in the global aviation market,” he added.
The new leasing company is expected to make aircraft acquisition easier for domestic airlines, many of which currently struggle with high leasing costs and limited access to financing.
By centralising leasing arrangements under a government-backed structure, officials believe Nigerian carriers would be able to expand fleets more efficiently and operate more competitively in the global market.
The initiative is also seen as part of broader reforms aimed at repositioning Nigeria’s aviation sector for growth, investment, and improved service delivery.
