The federal government has approved the establishment of a Nigerian aircraft leasing company, a private sector special purpose vehicle (SPV) with government backing.
The move could eliminate capacity challenges that continue to affect airlines’ operations in the country’s aviation sector.
Minister of Aviation and Aerospace Development, Festus Keyamo, said the federal executive council (FEC) approved at its meeting on Thursday.
Keyamo said the initiative is designed to address challenges faced by domestic airlines in accessing aircraft, noting that Nigeria’s aviation industry is largely driven by private operators.
He said the government’s role would include providing guarantees to financiers, particularly around aircraft repossession, while also holding equity in the company.
“This is a game changer that you will see in the next few months,” he said.
In November 2025, Keyamo announced that the federal government was set to establish an aircraft leasing company to ease plane acquisition challenges faced by domestic carriers.
