Private Investors to Fund 95 Percent of New Aircraft Leasing Firm, Keyamo Says

Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that private investors and development finance institutions will provide about 95 percent of the funding for the newly established Nigerian aircraft leasing company, with the Federal Government providing mainly strategic support and sovereign guarantees. 

Speaking during a meeting with representatives of the Airline Operators of Nigeria in Abuja, Keyamo said several development finance institutions and private investors across Africa and beyond had already expressed interest in financing the aviation leasing initiative. He explained that the Special Purpose Vehicle, recently approved by President Bola Ahmed Tinubu and the Federal Executive Council, will operate largely as a private sector-driven company. 

The minister said President Tinubu had directed four ministers, including Finance, Aviation, Industry, Trade and Investment, as well as the Attorney General of the Federation, to ensure the smooth take-off of the initiative. He also stated that the initiative was created to address the longstanding difficulties Nigerian airlines face in accessing aircraft and affordable financing.

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The minister also revealed that the African Development Bank had aligned with the initiative under its continental aviation financing programme, and that Nigeria has been selected as one of the pilot countries for the programme, which carries an estimated seven billion dollar funding package dedicated to aviation development across Africa.