The Federal Government has approved the establishment of a privately funded national aircraft leasing company to improve access to modern fleets for domestic airlines.
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 explained that the initiative marks a major shift in how Nigerians airlines acquire and finance aircraft, adding that the company would operate as a private-sector-driven Special Purpose Vehicle with government backing.
“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,” he said.
According to the Minister, the government’s primary function will be to provide sovereign guarantees to international lessors, manufacturers and investors, ensuring asset security and reducing investment risks.
He added that the federal government holds equity in the company through the Ministry of Finance Incorporated (MOFI).
The Minister noted that 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.
He said the initiative is expected to enhance the capacity of domestic airlines, reduce flight disruption and enable them compete more effectively with foreign carriers operating in Nigeria.
