The Federal Government has disclosed plans to establish an aircraft leasing company in Nigeria, aimed at providing a much-needed boost to local carriers. This strategic initiative is designed to empower Nigerian airlines by serving as an intermediary between them and international lessors, with the government providing a sovereign guarantee to facilitate transactions.

Festus Keyamo, minister of Aviation and Aerospace Development, disclosed this during the ceremonial arrival of Air Peace’s first dry lease aircraft, Boeing 737-700 at the Murtala Muhammed Airport Terminal 2 in Lagos.

According to Keyamo, the proposed aircraft leasing company will enable local airlines to access aircraft without having to navigate the complex global market alone. “We want to put an aircraft leasing company in place, so that Nigerian airlines will not be the ones negotiating with the world,” Keyamo stated.

“We don’t have to walk in silence again. The airlines don’t need to walk around the world looking for aircraft. Government must take care of that responsibility.” With the government’s sovereign guarantee, the project is expected to attract investors from around the world, creating a pool of resources that will support local airlines.

The minister emphasised that the leasing company will form a capital base, with local airlines given priority access to these resources. “This pool will form a capital base. No other person can be the off takers before the local airlines. This will make life easy for the airlines. We’ll be knocking on the doors of aircraft lessors and manufacturers very soon to talk business. We are here to support the local airlines.”

The establishment of the aircraft leasing company is expected to have a significant impact on the Nigerian aviation sector, enabling local carriers to compete more effectively with their international counterparts. With the government’s support, Nigerian airlines will be able to access modern, fuel-efficient aircraft, enhancing their operational efficiency and safety standards.

Keyamo described the arrival of the dry lease aircraft for Nigeria and aviation industry as a whole.

“This is a momentous occasion for Air Peace and the Nigerian aviation industry,” Keyamo stated. “It demonstrates the government’s commitment to supporting local carriers and promoting the growth of the aviation sector.”

Keyamo commended Air Peace for its discipline and financial prudence, which have enabled the airline to achieve this significant milestone. He also emphasised the need for local airlines to acquire more aircraft to compete effectively in the international market. “There is a need for the acquisition of more wide-body aircraft by local operators to compete in the international space,” Keyamo stated.

Allen Onyema, chairman, Air Peace said the journey of securing an aircraft through dry lease started at the minister’s office who saw the importance of having a vibrant aviation sector, and is always willing to partner with the local airlines, leasing companies and the Nigeria Civil Aviation Authority (NCAA) to ensure Nigeria has a chance to take its rightful place in commercial aviation in Africa.

Onyema said Air Peace has been very diligent in ensuring its aircraft are properly maintained, stressing that it would continue to represent Nigeria well at the international space.

“We make sure that our maintenance is top-notch. We are here on behalf of other Nigerian airlines. We are carrying the visions and aspirations of this country and if we fail, it will be a disgrace.

“Given the support we have received from all arms of government and the Nigerian public, I believe we won’t fail our country,” the Air Peace chairman said.

Onyema commended Festus Keyamo for his relentless efforts in supporting local airlines.

“We need wide-bodied aircraft. Like him or hate him, the minister has changed the face of the country’s aviation industry. In the eight years before he came, it was a struggle for Nigerian airlines. When the minister came on board, he noticed a gap and fixed it.

“Before now, the mantra was that Nigerian airlines lack capacity therefore let us invite foreign airlines to take over. He looked at what to do to support Nigerian airlines so that they can compete. The President also gave the marching order to make this happen,” Air Peace chairman said.

Onyeme said most big airlines don’t own some of the aircraft they use as most go to Boeing and Airbus to make orders and the lessors grant them.

“That is why you see one airline having about 400 planes. In Nigeria, every airline owner is expected to buy their own aircraft. When we brought up the issue of aircraft dry-leasing with the minister, he did the necessary things. Today, we have a dry-leased aircraft,” he said.

Moore Ibekwe, Junior sales director, Africa Region Boeing Commercial Airplanes said three years ago when he took up the job as a sales director for West Africa, East Africa, Southern Africa, and Morocco, only himself and one of his senior finance directors believed that this day could happen.

“However, I want to everyone because we continue to push. They were open to tell us what it would take for us to get here, how we can get aircraft into Nigeria, and I see this as the beginning. Yes, it’s one aircraft, but I can tell you this is the opening point for a better aviation sector,” Ibekwe said.

He said Nigeria needs to take its rightful place in aviation with Air Peace setting the pace.

“Air Peace plays a pivotal role in the Nigerian economy.This is about the region. This is about Africa. This is about us creating opportunities for the future.

“Air Peace hires or employs thousands of people, and their families depend on the airline for their livelihood. And it’s important that we have to support the industry here,” Ibekwe added.

Present at the event was Chris Najomo, Director General of the Nigeria Civil Aviation Authority; Bunmi Kuku, Managing Director Federal Airport Authority of Nigeria, Peter Ryan,

Irish Ambassador to Nigeria, and Kevin Ugwuoke, Financial partners- Executive Director Risk Management at Fidelity bank, who also represented by

Kenneth Opara, the Executive Director of the bank, among others.