The Federal Government has approved the establishment of a privately funded national aircraft leasing company to support domestic airlines with access to modern fleets. The development was disclosed in a statement on Friday by the Minister of Aviation and Aerospace Development, Festus Keyamo, following a meeting of the Federal Executive……
The Federal Government has approved the establishment of a privately funded national aircraft leasing company to support domestic airlines with access to modern fleets.
The development was disclosed in a statement on Friday by the Minister of Aviation and Aerospace Development, Festus Keyamo, following a meeting of the Federal Executive Council, noting that the company will be commercially operated.
Keyamo described the initiative as a major shift in how Nigerian carriers will acquire and finance aircraft, adding that the company would operate as a private-sector-driven Special Purpose Vehicle with government backing.
He said, “Just yesterday, I secured the approval of the Federal Executive Council, presided over by the President, for the establishment of the Nigeria Aircraft Leasing Company.
“The 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.”
The Minister explained 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.
Keyamo further disclosed that the federal government holds equity in the company through the Ministry of Finance Incorporated (MOFI).
He added, “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 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. I explained further at a press briefing yesterday after the meeting of the Federal Executive Council,” he concluded.