FG approves establishment of Nigeria Aircraft Leasing Company

The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that the Federal Government has approved the establishment of the Nigeria Aircraft Leasing Company.

The leasing company will be an incorporated Special Purpose Vehicle that will be fully privately funded, commercially operated, and impose no obligation on the Federal Government to invest, but will enjoy strategic government backing.

According to the minister, the aim of the company is to act as an SPV for the acquisition or leasing of aircraft globally for the use of local operators, giving the local airlines the option to further lease these aircraft locally through a single credible entity with a sovereign backing.

This initiative seeks to enhance the capacity of local operators to service domestic routes (which are presently fraught with cancellations and delays) and empower them to compete with the foreign airlines that presently dominate the Nigerian market.

He noted that the government’s primary function will be to provide sovereign guarantees to international lessors and manufacturers, offering security for asset repossession and reducing perceived risks for investors. And for this, the government holds equity through the Ministry of Finance Incorporated (MOFI).