The Federal Government has renewed its call for the creation of Nigerian-owned aircraft leasing companies as part of a broader strategy to strengthen aviation financing and accelerate the modernization of the country’s airline fleets. The policy direction was reaffirmed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during the opening session of the 2025 FAAN National Aviation Conference (FNAC), which commenced on Monday at the Eko Hotel and Convention Centre in Lagos. Keyamo was represented by senior ministry officials at the event.
With the theme “Elevating the Nigerian Aviation Industry through Investment, Partnership and Global Engagements,” the two-day conference brought together government representatives, aviation regulators, airline operators, financial institutions, and state leaders to explore solutions that will deepen investment in Nigeria’s fast-expanding aviation sector.
Keyamo stated that the establishment of indigenous leasing firms is central to reducing airlines’ reliance on foreign lessors, who often impose conditions that limit growth. According to him, Nigeria’s large population, its position as a natural West African aviation hub, and the ongoing reforms within the aviation sector make the country ripe for local participation in aircraft financing.
He noted that recent improvements in the nation’s legal and regulatory environment—particularly in relation to aviation financing—have created a solid foundation for private-sector-driven leasing companies. These reforms, he said, are designed to increase investor confidence, reduce risk exposure, and give Nigerian airlines easier access to capital for fleet renewal.
“Nigeria is not only a large market; it is a strategic aviation hub,” Keyamo stated. “Our investment priorities are structured, bankable, and designed to encourage private-sector leadership. With the progress made in aviation financing law, local leasing firms can now thrive. This presents a unique opportunity to deepen aviation financing and fast-track the modernization of Nigerian airline fleets.”
Beyond leasing, the minister outlined a range of investment avenues being pursued under the government’s Renewed Hope agenda. These include the modernization of airport infrastructure, the development of a regional Maintenance, Repair, and Overhaul (MRO) center to keep aircraft servicing within the country, and the establishment of dedicated cargo and logistics hubs to unlock Nigeria’s export potential in agriculture and manufacturing.
Nigeria’s improved compliance score of 75.5% in the Cape Town Convention (CTC) Compliance Index has also allowed the country to exit the Aviation Working Group (AWG) watchlist—a development expected to further boost investor interest. However, industry stakeholders caution that it may take up to two years before airlines fully experience the benefits of the improved compliance framework, including better leasing terms and lower insurance premiums.
The opening ceremony also featured remarks from President Bola Ahmed Tinubu, represented by the Secretary to the Government of the Federation (SGF), Dr. George Akume. Tinubu emphasized the aviation sector’s role in connecting markets, enabling trade, attracting investment, and creating jobs.
FAAN Managing Director, Mrs. Olubunmi Kuku, gave an update on ongoing airport upgrades across the country, including terminal modernization, runway rehabilitation projects, enhanced staff training, and the adoption of digital systems that meet global ISO standards. These initiatives, she said, are aimed at improving passenger experience and positioning Nigeria’s airports as attractive gateways for international investors.
State governments also used the forum to showcase ongoing and proposed aviation investments. The Plateau State Government revealed its N47.54 billion transformation plan for the Yakubu Gowon Airport, targeting its conversion into a modern Fresh Cargo Hub. Key components of the project include runway expansion for larger aircraft, construction of warehouses and cold chain facilities, procurement of cargo handling equipment, and installation of advanced operational systems.
Similarly, Imo State Governor Hope Uzodimma highlighted the state’s aviation ambitions, including recent upgrades at the Sam Mbakwe International Cargo Airport (SMICA), such as the installation of night landing facilities to improve operational reliability. He added that the state is pursuing a public-private partnership (PPP) to reposition the underutilized cargo terminal, with the goal of integrating it into the Orashi Special Energy Free Trade Zone. This linkage is expected to create a major logistics corridor that connects energy, agriculture, and digital exports to global markets.
Taken together, the discussions at the 2025 FNAC underscored Nigeria’s commitment to building a more resilient, investor-friendly, and globally competitive aviation ecosystem—one in which indigenous leasing companies may soon play a pivotal role.
