BY OLAPEJU OLUBI
Nigeria has stepped up its push to attract global aviation financing, with the Minister of Aviation and Aerospace Development, Festus Keyamo, presenting the country’s reform strides to international investors at the Aviation Working Group (AWG) General Meeting in London.
Addressing a gathering of aircraft lessors, financiers, legal experts and industry stakeholders, Keyamo said Nigeria is positioning itself as a credible and competitive destination for aircraft leasing and financing, anchored on stronger regulatory compliance and legal certainty.
He highlighted progress in the implementation of the Cape Town Convention, noting that reforms have significantly boosted investor confidence and improved access to funding for local airlines.
According to the Minister, “These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government’s commitment to implementing the Cape Town Convention both in substance and in practice.”
Nigeria’s compliance score under the Convention has climbed from 49 percent to 75.5 percent, supported by key legal and operational measures, including a Practice Direction issued by the Federal High Court and the effective rollout of the Irrevocable Deregistration and Export Request Authorisation (IDERA).
The improvements have resulted in Nigeria’s removal from the AWG blacklist.
Keyamo noted that over 80 percent of aircraft on Nigeria’s registry are leased, underscoring the importance of a predictable and investor-friendly legal framework.
He added that recent lease expirations were handled seamlessly, with aircraft deregistered and exported without disputes—further strengthening Nigeria’s credibility.
He explained that aviation growth in emerging markets is often constrained more by limited access to affordable capital than by passenger demand, stressing that the Convention helps reduce financing risks and costs globally.
“The Cape Town Convention is more than a treaty. It is a framework for building trust,” he said, adding that Nigeria is committed to closing the gap between legal compliance and real-world enforcement.
Despite the progress, the Minister acknowledged lingering challenges, including customs bottlenecks, foreign exchange volatility and inter-agency coordination issues.
He, however, assured stakeholders that these are being addressed through ongoing reforms, regulatory alignment and digitalisation efforts within agencies such as the Nigeria Civil Aviation Authority.
In a major policy signal, Keyamo disclosed that the Federal Executive Council has approved the establishment of a national aircraft leasing company, expected to unlock over $1 billion in financing capacity and reduce reliance on foreign lessors.
The proposed company, he said, will enable Nigerian airlines to access aircraft on more competitive terms, accelerate fleet modernisation and improve operational resilience.
He emphasised that Nigeria’s large population and growing passenger traffic require a sustainable aviation financing ecosystem driven by strong institutions and investor confidence.
Keyamo also reaffirmed the government’s openness to continued engagement with global stakeholders, noting that strategic partnerships would be critical to transforming aviation into a key driver of economic growth across Nigeria and the wider African region.
Olapeju is a journalist and aviation reporter.
