BY OLAPEJU OLUBI
Nigeria has stepped up its push to reposition its aviation industry as a major growth engine, unveiling a coordinated strategy to unlock aircraft financing, deepen investor confidence, and expand sector capacity in line with rising demand across Africa.
At the Nigeria Aircraft Acquisition and Investment Summit (NAAIS) held in Lagos yesterday, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the Federal Government is moving decisively to tackle long-standing structural bottlenecks that have constrained the growth of domestic airlines, particularly access to affordable aircraft.
Delivering a keynote address to a cross-section of global financiers, lessors, manufacturers, and regulators, the minister said the administration of President Bola Tinubu is treating aircraft acquisition as a national economic priority rather than a narrow commercial concern.
“We are here not merely to discuss aircraft acquisition as a transactional issue, but to unlock something far more strategic and far more consequential: capital, confidence, and capacity,” he said.
Industry projections highligh the urgency. Leading manufacturers Airbus and Boeing estimate that Africa will require between 1,205 and 1,460 new aircraft over the next two decades, driven by rapid urbanisation, income growth, and sustained passenger traffic expansion of about six per cent annually.
Against this backdrop, Nigeria, Africa’s largest population centreaims to position itself as a key beneficiary of the continent’s aviation growth curve.
“These projections clearly show that the centre of gravity in aviation is shifting toward emerging markets, and Nigeria must be at the forefront of that transition,” Keyamo said.
For years, however, limited access to financing has hampered the ability of Nigerian carriers to modernise fleets, expand routes, and compete effectively.
The minister acknowledged that high leasing costs and weak creditor protections had historically discouraged international lessors and lenders.
To reverse this trend, the government has rolled out a series of legal and regulatory reforms designed to reduce investment risk and improve market transparency.
Central to these efforts is Nigeria’s strengthened compliance with the Cape Town Convention on aircraft leasing. Key measures include the Federal High Court Practice Direction issued in September 2024 and the subsequent rollout of the Irrevocable De-Registration and Export Request Authorisation (IDERA) framework.
According to the minister, these steps have significantly improved the legal certainty required by global financiers.
“Capital does not simply chase opportunity; it chases bankable certainty. Nigeria has worked deliberately to restore that certainty,” he stated.
In addition, Nigeria has made progress in addressing the issue of trapped airline funds, a major concern for international operators.
The International Air Transport Association (IATA) confirmed that about 98 per cent of previously blocked funds had been cleared by mid-2024, restoring confidence in the country’s financial environment.
“That action sent a strong signal that Nigeria understands the importance of liquidity and repatriation in sustaining investor confidence,” Keyamo said.
With the legal and financial groundwork in place, attention is now turning to the development of financing structures capable of supporting fleet growth.
The minister called for increased collaboration among banks, export-credit agencies, insurers, and development finance institutions to create sustainable leasing and funding models.
He stressed that confidence in the aviation sector is also being reinforced through regulatory reforms.
The Nigeria Civil Aviation Regulations 2023, he said, have aligned the country’s aviation framework with global standards set by the International Civil Aviation Organization.
Beyond policy, the government is investing in physical and human capital to strengthen the industry’s long-term viability.
“Partnerships with Boeing and Cranfield University are supporting training initiatives for Nigerian airlines, while local Maintenance, Repair and Overhaul (MRO) projects—such as Air Peace’s facility in Lagos and XEJET’s planned $10 million centre in Abuja—are expected to reduce dependence on foreign technical services.
“These investments are critical to reducing aircraft downtime, retaining value within the economy, and creating skilled jobs for Nigerians,” the minister said.
Infrastructure development is also receiving significant attention. With about $500 million committed to upgrading Lagos’ international airport, the government aims to enhance capacity at one of Africa’s busiest gateways and improve the passenger experience.
Data from IATA indicates that Nigeria recorded 2.1 million international passenger departures in 2023, maintains air links to 38 countries, and operates 24 airports with scheduled services. Over the past five years, the country has added 17 new international routes, reflecting steady growth in connectivity.
Yet, officials say the broader vision extends beyond passenger traffic. With air cargo accounting for a disproportionately high share of global trade value, Nigeria is seeking to leverage aviation to boost exports, support agribusiness, and expand participation in global supply chains.
“It is about positioning our airports not just as transit points, but as economic platforms that drive trade, manufacturing, and logistics,” Keyamo explained.
To achieve this, the government plans to develop cargo hubs, cold-chain systems, and modern border processes capable of handling high-value, time-sensitive goods.
The minister emphasised that aircraft acquisition must be integrated into a wider ecosystem that includes maintenance capability, workforce development, and digital infrastructure.
“We are not merely discussing airplanes. We are building a financing ecosystem that connects capital to opportunity and ensures sustainable growth,” he said.
He urged international investors to take advantage of Nigeria’s reform momentum, assuring them that the country has strengthened creditor protections, improved regulatory alignment, and demonstrated commitment to market stability.
“What we seek now is partnership—partnership that will unlock affordable financing, support fleet expansion, and position Nigeria as a hub for aviation growth in Africa,” he added.
As global aviation demand shifts toward emerging markets, Nigeria is betting that its combination of reforms, infrastructure investment, and market scale will attract the capital needed to transform its aviation sector.
“Nigeria is no longer speaking in terms of potential alone,” the minister said. “We are building the structures that will deliver performance.”
Olapeju is a journalist and aviation reporter.
