The Minister of Aviation and Aerospace Development, Festus Keyamo, has hinted at the Federal Government’s plan to establish an aircraft leasing company in the country.Keyamo disclosed this on Friday during the arrival ceremony of the first dry-leased aircraft by Air Peace at the Murtala Muhammed International Airport, Lagos.When fully operational, the firm will serve as a middle company between Nigerian operators and international lessors and aircraft manufacturers.The initiative, according to the minister, is expected to boost the Nigerian aviation industry through the availability of dry-leased aircraft and enable local operators to compete more effectively with international airlines.Under the dry lease arrangement, Air Peace received a Boeing 737-700 aircraft.A dry lease refers to an agreement where only the aircraft is provided by the lessor, while the lessee handles crew, insurance, and maintenance. This differs from the more common wet lease, which includes crew and full operational support.Before now, the international aviation community—particularly lessors and aircraft manufacturers—had reportedly refused to lease aircraft to Nigerian operators due to trust and contractual concerns. This situation, Keyamo explained, necessitated the signing of the Cape Town Practice Direction, a legal framework that allows lessors to terminate agreements in cases of breach by operators
Following the signing of this document by the Federal Government in 2024, Keyamo led a delegation of Nigerian operators to Dublin, where discussions with international lessors culminated in agreements to lease aircraft to Nigerian airlines.Dignitaries at the event included the Director-General of the Nigeria Civil Aviation Authority, Chris Najomo; the Managing Director of the Federal Airports Authority of Nigeria, Bunmi Kuku; the Irish Ambassador to Nigeria, Peter Ryan; and financial partners including the Executive Director of Risk Management at Fidelity Bank, Kevin Ugwuoke, who represented the Executive Director, Kenneth Opara, among others.Keyamo reaffirmed the administration’s commitment to transforming Nigeria into a major aviation hub, saying the country “has the rules and the market.”While outlining plans for the proposed leasing company, the minister disclosed that discussions had been held with the Minister of Finance, as well as investment teams from Dubai and Dublin, to structure the new venture.
That’s Mr. President’s vision, and we’re going to turn it into a major hub. Just yesterday, I was with the Minister of Finance and a team from Dubai and Dublin. We have put in place plans to start a Nigerian aircraft leasing company. We already have investors, and the Minister of Finance has incorporated the plan. As it progresses, we will inform Nigerians how we’re doing,” Keyamo said.He added that the initiative, long identified as a missing piece in the sector’s growth, aims to provide critical support to local airlines and reduce their dependence on foreign leasing arrangements.“This has been part of the aviation sector’s roadmap for the past 15 years. Many governments have tried to achieve it without success. But we want to make it one of our administration’s legacies. The structure is also designed to support local airlines,” he said.The minister noted that the journey had been challenging but that steady progress was being recorded in the sector.“It’s been a long walk to get to this point. From the President to the Vice President, the Judiciary, and the National Assembly, every arm of government has bought into this mission,” he added.Speaking earlier, the Chairman of Air Peace, Allen Onyema, commended the minister, describing him as a dedicated public servant.He said Nigeria’s aviation sector had struggled with capacity issues for years until Keyamo identified the gaps and initiated reforms to strengthen local airlines.“We need wide-bodied aircraft. Like him or hate him, he has changed the face of the aviation industry. Before he came, it was a struggle for Nigerian airlines. The minister noticed the gap and fixed it. Before now, the mantra was that Nigerian airlines lacked capacity, so foreign airlines were invited to take over. He changed that narrative,” Onyema said.He pledged that Air Peace would ensure top-notch maintenance of its aircraft to maintain the confidence of international lessors.“We will ensure that our maintenance is world-class. We represent Nigerian airlines and carry the aspirations of the nation. Given the support we’ve received from government and the Nigerian public, we will not fail,” Onyema added.
