Zenith Bank, West Africa’s largest financial services provider, Ibom Air and Airbus celebrated the successful financing of Ibom Air’s first A220 delivered in November 2023.
According to a release by the airline, this historic collaboration also represents the bank’s commitment to aircraft financing.
The agreement between Ibom Air and Zenith Bank, which was facilitated by Airbus, is part of a broader shift that could provide much-needed financial momentum and signal a new era of financial support for the continent’s promising aviation sector.
“At Zenith Bank, we know how important a role financial institutions play in acting as economic enablers,’ says Dr Ebenezer Onyeagwu, the Bank’s Group Managing Director. “We also understand how important the aviation sector is to facilitating economic growth in Nigeria and across the broader African continent. This landmark agreement solidifies our commitment to supporting regional carriers and advancing the landscape of African aviation financing.
Securing adequate funding poses a significant hurdle for African carriers. Financing conditions for African Airlines are generally less favorable compared to other regions. Consequently, African airlines encounter challenges in acquiring and executing renewal and expansion initiatives.
Ibom Air Chief Operating Officer George Uriesi: “Aircraft financing is a collaborative effort, and the support of regional banks is pivotal.
This synergy fosters a sustainable aviation ecosystem, allowing us to soar higher and drive positive socio-economic impact in Nigeria and the broader continent. Nigeria is widely recognized as the African market with the highest growth potential, and we aim to be at the forefront of that growth.”
According to the 2023 Airbus Global Market Forecast (GMF), airlines serving Nigeria will require nearly 160 passenger and freight aircraft in the next two decades. This includes 131 single-aisle aircraft, such as the A220 and A320 families, and 28 widebody aircraft, such as the A330 and A350 families.
“Over the past five years, Airbus has successfully supported the financing of more than 60 deliveries within the African continent through lessors, banks, and export credit agencies. We are thrilled to now have Zenith Bank in the arena of brand-new Airbus aircraft financiers; Boris Sakrauski, Head of Customer Finance Airbus, we hope that its involvement in the sector sends a powerful signal to other banks and financial institutions in Nigeria and across the continent about the exciting potential of the African aviation sector”
