The Minister of Aviation and Aerospace Development, Festus Keyamo, has said the Federal Government’s ongoing aviation reforms are designed to position Nigeria as a credible and competitive destination for aircraft financing and leasing transactions.
Keyamo stated this while addressing international aircraft lessors, financiers, legal experts, and aviation stakeholders at the General Meeting of the Aviation Working Group (AWG) in London, where he outlined the country’s progress in implementing global aviation financing standards and improving investor confidence within the sector.
According to a statement issued by his Special Adviser on Media and Communications, Tunde Moshood, the minister said Nigeria’s recent reforms had already strengthened confidence among global aviation financiers and improved access to aircraft leasing opportunities for domestic carriers.
He explained that aviation growth in emerging economies such as Nigeria is often limited not by passenger demand, but by inadequate access to affordable aircraft financing and leasing structures.
Keyamo noted that the Cape Town Convention was established to reduce legal uncertainties, strengthen creditor confidence, and lower financing risks for airlines and lessors globally.
The minister recalled that Nigeria was among the original signatories to the Cape Town Convention during the diplomatic conference held in Cape Town in 2001 and later domesticated the treaty through the Civil Aviation Act.
According to him, more than 80 per cent of aircraft currently operating on the Nigerian registry were acquired through lease arrangements, while most aircraft whose lease agreements expired had been successfully deregistered and exported without major disputes or regulatory obstacles.
He said the development had helped strengthen Nigeria’s reputation as a Cape Town Convention-compliant market and improved the country’s standing within the global aviation financing ecosystem.
Keyamo disclosed that Nigeria’s compliance score under the convention improved from 49 per cent to 70.5 per cent in September 2024 following the signing of a new Practice Direction by the Chief Judge of the Federal High Court aimed at strengthening legal enforcement mechanisms in aviation-related matters.
He added that the subsequent operationalisation of the Irrevocable Deregistration and Export Request Authorisation (IDERA) further increased Nigeria’s compliance rating to 75.5 per cent, resulting in the country’s removal from the Aviation Working Group blacklist.
“These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government’s commitment to implementing the Cape Town Convention both in substance and in practice,” the minister said.
Keyamo stated that the reforms had already begun producing measurable results, citing recent successful dry lease transactions involving Nigerian airlines and international financing institutions as evidence of renewed investor confidence.
Despite the progress, the minister acknowledged that some operational challenges still exist within the aviation financing environment, including customs bottlenecks, temporary importation procedures, foreign exchange volatility, and inter-agency coordination issues affecting lease structures and financing predictability.
He, however, assured stakeholders that the Federal Government was actively addressing the issues through coordinated reforms involving regulatory agencies, judicial capacity development, and ongoing digitalisation initiatives within the Nigeria Civil Aviation Authority.
In a major policy announcement, Keyamo also disclosed that the Federal Executive Council had approved the establishment of a Nigerian aircraft leasing company expected to unlock more than $1 billion in future fleet financing capacity for domestic operators.
According to him, the proposed leasing company would reduce dependence on foreign lessors, improve airlines’ access to aircraft on more competitive terms, accelerate fleet modernisation, and strengthen operational sustainability across the sector.
The minister stressed that Nigeria’s growing aviation market requires a modern, efficient, and financially sustainable framework capable of attracting long-term and competitively priced investments.
He maintained that sustainable aviation growth can only be achieved through strong legal systems, institutional credibility, and consistent respect for international obligations.
“The Cape Town Convention is more than a treaty. It is a framework for building trust,” Keyamo said, while reaffirming Nigeria’s commitment to deeper collaboration with global aviation financiers and stakeholders.
He expressed optimism that ongoing reforms and strategic partnerships would strengthen aviation financing in Nigeria and position the country as a major player within Africa’s aviation industry.
