Minister Festus Keyamo Targets Global Aircraft Lessors To Resolve Stunted Growth In Nigeria’s Aviation Financing Sector

Aviation Minister Festus Keyamo outlines new legal protections to attract global aircraft lessors and boost fleet renewal for Nigerian airlines.

By: AXL Media

Published: Apr 3, 2026, 10:35 AM EDT

Source: The information in this article was sourced from THISDAYLIVE

Addressing The Decades Of Stagnation In Fleet Expansion

The Minister of Aviation and Aerospace Development, Festus Keyamo, has pointed to the systemic lack of access to modern aircraft financing as the critical bottleneck for domestic operators. Speaking at the inaugural Nigeria Aircraft Acquisition and Investment Summit in Lagos, Keyamo explained that for decades, local airlines have struggled to compete due to the high costs associated with acquiring new planes. This financial strain has led to aging fleets, limited route expansion, and an overall weakened competitive position on the continent. By treating this as a national challenge rather than a private corporate issue, the administration aims to revitalize the industry through direct intervention.

Institutionalizing Legal Protections For International Lessors

To combat investor hesitation, the federal government has moved to strengthen Nigeria’s compliance with international treaties, specifically the Cape Town Convention and its associated Aircraft Protocol. Keyamo detailed the issuance of the 2024 Practice Direction from the Federal High Court, which provides a clear legal roadmap for aircraft leasing and recovery. These reforms are further supported by the Irrevocable De-Registration and Export Request Authorisation, or IDERA, advisory circular. According to Keyamo, these measures are essential to ensuring that global financiers have the "bankable certainty" required to provide dry-lease options to Nigerian carriers.

Leveraging Market Weight And Demographic Advantages

Nigeria’s aviation sector is currently supported by a massive domestic market of approximately 240 million people, a factor that Keyamo believes global investors can no longer ignore. Recent data from the International Air Transport Association shows that the country recorded 2.1 million international departures in 2023 and has added 17 new international routes over the last five years. The Minister noted that the strategic importance of Nigeria as a gateway is being reinforced by ongoing airport investments at both the federal and state levels. This infrastructure growth is intended to send a strong signal of long-term confidence to global partners.