Nigeria’s aviation sector is set for a major shift as the Federal Government has unveiled a Special Purpose Vehicle (SPV) designed to simplify aircraft leasing for local airlines and strengthen operational capacity across the industry.
The Government also disclosed that the African Development Bank African Development Bank is currently preparing to sign a Memorandum of Understanding with Nigeria on the leasing initiative, a development it described as a strong signal of international confidence in the project.
Leasing Framework Targets Aircraft Access Challenges
In a statement issued by the Special Adviser on Media and Communications, Tunde Moshood, the Federal Government announced the initiative, which was unveiled by the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, during a high-level stakeholders’ meeting in Abuja. The Minister reaffirmed that the scheme is not mandatory for airlines but is designed purely as a support mechanism to improve access to aircraft.
The Minister further clarified that patronage of the leasing company would not be compulsory, stressing that the SPV is structured strictly to facilitate easier aircraft leasing for Nigerian operators rather than function as a competing entity.
“Those who’re going to manage this initiative are not competitors to the airlines. It is purely an SPV established to help ease aircraft leasing for Nigerian operators. They are not applying for AOCs,” he stated.
He explained that the Nigeria Aircraft Leasing Company has long been part of Nigeria’s aviation roadmap since 2015 but was delayed due to compliance challenges under the Cape Town Convention framework. With those issues now resolved, implementation has become possible.
According to him, the removal of those regulatory constraints has reopened the path for structured aircraft leasing support that can help airlines struggling with fleet acquisition and operational scaling.
He added that President Bola Ahmed Tinubu has directed the Ministries of Aviation and Aerospace Development, Finance, Trade and Industry, and Justice to collaborate on the framework for the SPV. The structure, he noted, will ensure clear governance while maintaining private-sector efficiency.
Government involvement, he said, will be limited to specific guarantees tied strictly to aircraft repossession obligations, ensuring that the leasing model remains commercially driven and sustainable.
Speaking on the broader industry implications, stakeholders at the meeting welcomed the initiative as a long-awaited intervention that could reshape airline operations in Nigeria.
Responding on behalf of operators, the Chief Executive Officer of Ibom Air, Mr. George Uriesi, commended the reform direction, describing it as one of the most significant aviation policy shifts in recent years.
He noted that the Minister had already achieved major milestones, including resolution of Cape Town Convention issues, insurance reforms, and now the leasing initiative.
“If you’re able to pull this over successfully, your administration will remain almost unbeaten in Nigerian aviation,” Uriesi said, adding that the leasing SPV was both “welcome and overdue.”
Industry observers believe the initiative could improve fleet availability, reduce acquisition pressure on airlines, and enhance Nigeria’s competitiveness in the African aviation market.
The Nigerian Civil Aviation Authority is expected to play a key regulatory role as the framework evolves, alongside global standards influenced by the International Air Transport Association International Air Transport Association.
The Federal Airports Authority of Nigeria Federal Airports Authority of Nigeria will also remain central to infrastructure alignment as the sector adapts to increased fleet activity.
Ultimately, the Leasing SPV is expected to deepen investor confidence, modernise airline fleets, and position Nigeria as a stronger aviation hub within Africa.
