The Federal Executive Council (FEC), chaired by President Bola Tinubu, has given the green light for the creation of the Nigeria Aircraft Leasing Company, marking a new move in the country’s aviation sector.
The decision was announced after the Council’s meeting held on Friday, with the Minister of Aviation and Aerospace Development, Festus Keyamo, confirming the development in an official statement.
Keyamo explained that the proposed company will operate as an incorporated Special Purpose Vehicle (SPV), driven entirely by private funding and commercial operations. He stressed that the Federal Government will not be required to inject capital into the venture, although it will provide strategic support.
According to him, the government’s role will centre on issuing sovereign guarantees to international aircraft lessors and manufacturers. This, he said, is intended to assure asset repossession and reduce investor risks.
“And for this, the government holds equity through the Ministry of Finance Incorporated (MOFI)”, he said, adding that the company is designed to function as an SPV for acquiring or leasing aircraft globally for use by domestic operators.
On how it will function, the minister noted that local airlines will be able to lease aircraft through a single, credible entity backed by sovereign guarantees, thereby improving access to aviation assets.
He further stated that the initiative fits into the broader agenda of the Tinubu administration to strengthen private sector involvement, upgrade infrastructure, and position Nigeria as a key aviation hub in Africa.
“This is not just a policy decision; it is a strategic intervention aimed at unlocking growth, creating jobs, and ensuring long-term sustainability in our aviation ecosystem,” he added.
“The establishment of the Nigerian Aircraft Leasing Company represents a bold step toward strengthening the aviation value chain, fostering regional connectivity, and enhancing Nigeria’s competitiveness in the global aviation market,” he concluded.