The Federal Government has approved the establishment of a national aircraft leasing company to support domestic airlines with access to modern fleets.

The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the decision following a meeting of the Federal Executive Council, describing the initiative as a major shift in how

Nigerian carriers will acquire and finance aircraft.

In a statement issued on Friday, Keyamo said the company would operate as a private-sector-driven Special Purpose Vehicle with government backing.

Keyamo said, “This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa.”

According to him, the platform will enable airlines to source aircraft through a centralised system rather than negotiating individually with international lessors.

Keyamo added that the government would provide support through sovereign guarantees while allowing private investors to drive the project.

According to the statement, the initiative is also expected to extend beyond Nigeria, offering leasing opportunities to operators across West Africa and the wider continent.

He added, “Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security.”

He noted that the model had already attracted interest from both local and international investors.

The minister said the initiative is expected to strengthen the aviation sector, improve airline capacity and position Nigeria as a hub for aircraft leasing in the region. (The PUNCH)