- Safiu Kehinde
President Bola Tinubu has approved the establishment of the Nigeria Aircraft Leasing Company.
Tinubu gave the approval at the Federal Executive Council meeting held on Thursday in Abuja.
Confirming the development in a statement issued on his official x handle on Friday, the Minister of Aviation, Festus Keyamo explained that the company which will be incorporated under Special Purpose Vehicle will enable local airline operators to acquire or lease aircraft globally.
The, according to Keyamo, will enhance the capacity of the operators and enable them to compete globally.
“Just yesterday, I secured the approval of the Federal Executive Council, presided over by the President, for the establishment of the Nigeria Aircraft Leasing Company.
“The aim of the company is to act as a Special Purpose Vehicle for the acquisition or leasing of aircraft globally for the use of local operators, giving the local airlines the option to further lease these aircraft locally through a single credible entity with a sovereign backing.
“This initiative seeks to enhance the capacity of local operators to service domestic routes (which are presently fraught with cancellations and delays) and empower them to compete with the foreign airlines that presently dominate the Nigerian market.” He said.
Keyamo further explained that the company will be commercially operated but privatly funded with no obligation on the Federal Government to invest.
While it will still be backed strategically by the government, the primary function of the government will however be provision of sovereign guarantees to international lessors and manufacturers.
“The company will be fully privately funded, commercially operated, and impose no obligation on the Federal Government to invest, but will enjoy strategic government backing.
“The government’s primary function will be to provide sovereign guarantees to international lessors and manufacturers, offering security for asset repossession and reducing perceived risks for investors.
“And for this, the government holds equity through the Ministry of Finance Incorporated (MOFI).” Keyamo added.