FG begins talks with aircraft lessors

The Federal Government has said it is currently discussing with aircraft leasing and manufacturing companies in a move to stimulate local investments in the country’s aviation sector.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this information in a statement released on Tuesday evening via X (formerly Twitter).

Keyamo said the significance of aircraft leasing, especially dry leasing, was a key factor in enhancing the operations of local operators in the airline industry.

He mentioned that major airlines worldwide relied on dry leasing, as no airline or government could fully afford to purchase its entire fleet of aircraft.

The minister stated that the establishment of Maintenance, Repair, and Overhaul (MRO) facilities would propel the growth and efficiency of Nigeria’s aviation industry.

Keyamo mentioned ongoing efforts to attract investors for these facilities, acknowledging their importance in bolstering the aviation sector.

“We are determined to go far and wide to woo aircraft leasing companies and aircraft manufacturers to come to our aid. There is no shame in doing this now since we lack the capacity to produce our own aircraft or to purchase them,” said Keyamo.

Further, minister Keyamo urged the government to provide an enabling environment that will allow potentisl foreign investors to thrive.

He noted, “Should the government completely abandon local operators to fend for themselves? What can the government do to help in this regard? It is simple: The government should provide the enabling environment for these businesses to thrive by providing assurances to aircraft manufacturers and leasing companies around the world that their aircraft are safe within the country if they lease them to our businesses here; that includes assurances and guarantees that these creditors can secure their assets anytime there is a default.”

“This is in line with the Cape Town Convention, to which Nigeria is a signatory. It is our duty as the government to provide this comfort and assurance to the potential lessors. We are currently on top of that, and the package will be revealed soon. The lack of this is one big factor that has led to the high mortality rate of airlines in Nigeria in the last 40+ years. There are other factors, too,” the minister declared.