E-Financial
Mirroring Fidelity Bank’s Giant Footprints in Aviation Financing in Nigeria
Aviation business, not only in Nigeria, is generally known to be a capital intensive one and strictly guided by international regulations as prescribed by the International Civil Aviation Organisation (ICAO).
Fidelity Bank
The ICAO recommended standards and Practices are to be referred to when dealing in aviation business, therefore, Nigeria being a signatory to ICAO should uphold international civil aviation standards and fulfill its obligations under the Convention on International Civil Aviation.
Numerous challenges, including high operating cost; fluctuating exchange rates; difficulties in aircraft repossession; perceived high-risk environment for international financiers and lessors, leading to stringent financing terms or reluctance to engage with Nigerian airlines, have really overwhelmed the sector.
Experts say international lessors often perceive Nigeria as a high-risk country due to factors like currency fluctuations and difficulties in aircraft repossession, making it harder for airlines to secure leases on favourable terms and encountering difficulties in securing financing for aircraft acquisition and maintenance.
“Despite its strategic location, burgeoning population, and role as West Africa’s gateway, Nigeria’s aviation sector struggles to attract investment and secure newer, fuel-efficient aircraft under favorable leasing terms.
According to analysts, domestic airlines continue to shrink in size ‘due to lack of adequate financing and sometimes lack of sincerity among many operators who are not disciplined enough to differentiate between operating funds from personal monies and in the mix they encroach into their capital. This is why many airlines find it difficult to offset their loans, and because of frivolous spending by many operator and other factors, the banks had it as a policy not to give credit facility to airlines’.
Fidelity Bank’s Midas Touch
Not many people were aware that while banks stayed away from the sector, Fidelity Bank placed a bet on Barrister Allen Onyema’s Air Peace brand over 10 years ago.
Air Peace began operations with seven aircraft consisting of three Dornier 328s and four Boeing 737-500. This initial fleet was notably larger than what some other airlines started with. The airline launched on October 24, 2014.
Despite their size and smallness, Fidelity Bank chose to stick with the airline. It provided fund to buy new aircraft from Boeing. In 2018, Dr. Allen Onyema signed an agreement with Boeing for 10 new aircraft, this was financed by Fidelity Bank.
Fidelity Bank provided the funds required for Air Peace’s growth and expansion. Air Peace has scaled up and is now the largest airline in West Africa by fleet and size.
The airline has also kept faith with Fidelity Bank by choosing to bank with it even in the face of multiple choices, currently.
No airline in Nigeria today comes close to Air Peace in terms of daily turnover and liquidity.
Onyema, who disclosed recently at a press conference to announce commencement of Abuja-London Heathrow flights, that the airline currently has 49 aircraft, 36 on outright purchase and four on wet lease, spoke of the financial integrity of the airline, adding that it has contributed to the feat of securing the coveted slot in Heathrow.
Speaking on maintenance and financial integrity of the airline, Onyema described its fleet maintenance as top notch, revealing that its partnership with Israeli Aerospace Service and OEM has also earned it international accolades. He added that Air Peace’s financial integrity has grown the confidence of other financial institutions in investment in aviation.
“The banking industry confidence has grown due to our financial integrity. Fidelity bank celebrated us recently, our financial integrity is the reason for our expansion, every Nigerian banks now wants to partner with us because we see borrowed money as other people’s money, they are depositors’ money, so we are prudent with it, banks don’t look over their shoulders when they are dealing with us”, he added.
On Sunday, April 21, 2024, Fidelity Bank hosted an evening in honour of Air Peace for achieving a historic milestone of being the first Nigerian airline in recent times to commence direct flights from Nigeria to London.
The dinner, which also coincided with the 10th year anniversary of the airline, was to be an opportunity to get together to celebrate Nigerian aviation giant and Chairman of the Air Peace Group, Dr. Allen Onyema, who had broken the jinx of Nigerian airlines in the international aviation space with its commencement of flights to London.
Making its debut flight to London on March 30, 2024, with a ticket price of N1.2 million while players in the space prior to March 30 had charged as much as N3 million, foreign airlines plying the route has since continued to drop their prices in order to remain competitive in the market.
Air Peace’ involvement in the international flight terrain has received lots of accolades from Nigerians at home and abroad and its strategic pricing is also a big win for Nigeria’s flying public as reduced flight cost gives Nigerians more liquidity to enjoy other pleasures they may wish.
Following on this, Fidelity bank’s evening in honour of Air Peace is a loud cheer in support of the airline.
According to Onyema, when the airline started operating in 2014, of all the financial institution within the country, only Fidelity bank was willing to support it through its teething period.
Onyema noted that the support gotten from the bank has been consistent through the years enabling him to fulfill his lifelong dream of job creation and empowerment of the average Nigerian.
“This bank (Fidelity) is the only bank that responded to us in the early days. They believed in us. People that earn hundred thousand a month, they give them loans. I call it our journey with Fidelity Bank”.
“Dr. Nneka Onyeali-Ikpe has just spoken about us, how we were there for them. But I also remember how she was there for us while she was an Executive Director with Fidelity. The team was always there when the road was very rough. Words have failed me because I didn’t know this day will come when an indigenous institution will be celebrating another indigenous institution. It is very encouraging.”
In her remarks at the event, the Managing Director and Chief Executive Officer, Fidelity bank, Dr. Onyeka Onyeali-Ikpe, stated that the celebration is well deserved as Air Peace has through financial discipline expanded its operational fleet and is going the extra mile to put Nigeria on the world stage.
“Today, we are celebrating one of ours. They started operations with a few aircrafts and today they have 24 aircrafts. My experience with them underscores what you call financial discipline. When you go through their accounts, you will not see personal spend.
“That is a lesson for everybody. We are here to celebrate them. This is a major milestone. We have supported them, no doubt, but they have also been very loyal to us. Because they have been a big fan for a very long time and all the big boys wanted them but Allen and his team said no.
Ibom Air
Fidelity Bank is also a part of the success story of Ibom Air as it was recently revealed by the erstwhile managing Director of the airline, Captain Mfon Udom that it was the lead financier for the acquisition of its Airbus A220-300 Series.
Speaking at the ceremony to officially receive the aircraft at the Victor Attah International Airport Uyo, Udom stated that “there are several Banks that are supporting Ibom Air, but this Aircraft in particular has been made possible by Fidelity Bank and Union Bank.’
“The significance of this ceremony today cannot be over-emphasized. I must thank Fidelity Bank because they have come in full force to support us. By 2026 we are going to be operating 18 aircraft and adding two new destinations to the routes of Ibom Air later this year, the aircraft will boost services on existing routes.
“My speech would be incomplete without acknowledging the role played by Fidelity Bank as the lead financier of the acquisition of Ibom’s Air’s Airbus A220-300 aircraft”, he stated.
Also speaking at the event, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, represented by Mr. Charles Nwoke, Executive Director, Risk Management, Fidelity Bank noted that “As the market leader in airline financing in Nigeria, Fidelity Bank is proud to support Ibom Air in this venture.
His words “The partnership reflects our commitment to being the bank of choice for the people of Akwa Ibom State. And we pledge to do more for our valued customers as we continue to pursue our corporate mandate of helping individuals to grow, businesses to thrive and economies to prosper.’’
Enugu Air
And the recently launched Enugu Air was also made possible with a strong financial support of Fidelity Bank.
Its Managing Director, Dr. Nneka Onyeali-Ikpe, described the launch of Enugu Air as a powerful affirmation that the nation’s aviation sector is major driver of Nigeria’s economic growth.
Speaking at the official launch of the Enugu Air held at the Akanu Ibiam International Airport, Enugu, she stated that ‘Fidelity Bank is proud to finance tomorrow’s opportunities today, noting that the bank’s support for Enugu Air aligns with its belief in aviation as a catalyst for growth’.
“It is an honour to join you today as we celebrate the official launch of Enugu Air. As the lead financier of this visionary project, our support for Enugu Air reflects our long-standing belief in aviation as a driver of economic growth, regional connectivity, and national transformation.
“At Fidelity Bank, we stand firmly behind its potential to unlock new corridors of opportunity by boosting tourism, accelerating commerce, and creating thousands of jobs across the Southeast. We are proud to finance tomorrow’s opportunities today, a powerful affirmation that ‘Tomorrow Is Here’ in Enugu State and across Nigeria’s aviation sector.” she stated.
CTC signing by Nigeria
Led by the Vice President, Kashim Shettima and Aviation and Aerospace Development Minister, Festus Keyamo, Nigeria recently signed the Cape Town Convention (CTC) Practice Direction in the aviation sector, aimed at reducing the cost of airline operations. This move is expected to facilitate aircraft leasing and financing, potentially leading to lower flight costs for passengers.
CTC is a treaty designed to facilitate asset-based financing and leasing of aviation equipment, expand financing opportunities, and reduce costs – thereby providing substantial economic benefits. It is believed that this move by government will continue to encourage Fidelity Bank to support more domestic airlines that have hitherto found it difficult to access funds for fleet and route expansion.
Taiwo Oyedele, minister of Finance and coordinating minister of the Economy, has said that Africa’s payment ecosystem should move beyond traditional systems that rely on third-party currencies for cross-border transactions, noting that such arrangements increase costs and create inefficiencies.
Taiwo Oyedele, minister of Finance and coordinating minister of the Economy
To this end, he proposed the development of an Africa-wide payment card that would enable direct transactions between African currencies without requiring conversion through the United States dollar or other intermediary currencies, as part of efforts to deepen intra-African trade and reduce transaction costs.
Oyedele, made the proposal while receiving a delegation from Mastercard in Abuja.
Currently, most card payments between African countries are routed through currencies such as the U.S. dollar. For instance, when a Nigerian cardholder makes a purchase in Ghana, the transaction is often converted from Ghanaian cedis to U.S. dollars before being converted into naira, attracting additional costs through multiple exchange-rate conversions.
Speaking during the meeting, the minister urged Mastercard to support the creation of a payment system that allows direct settlements between African currencies.
“We hope that, for example, we have a payment card that you can use to pay from naira to Kenyan shillings, to South African rand, without a third currency. And we know you can make it possible,” Oyedele said.
He said eliminating intermediary currencies would improve payment efficiency, reduce transaction costs and strengthen economic integration across the continent, particularly under the framework of the African Continental Free Trade Area (AfCFTA).
The minister also called on Mastercard to expand access to credit cards in Nigeria, describing consumer credit penetration as low even among top public officials and high-income earners.
“Based on my own personal experience, one of the areas where we hope you will take the lead is just making credit cards available to Nigerians.
It is difficult, even for someone at my level, to get a credit card,” he said.
While acknowledging the progress made by Nigeria’s financial technology sector, Oyedele said there remains significant room for growth and innovation.
He noted that Nigeria hosts five of Africa’s nine fintech unicorns, reflecting the country’s growing prominence in the continent’s digital finance landscape.
“Our fintech sector is quite developed, but we know that we can do much better. We can be much bigger,” he said.
“It is interesting to know that Africa has nine unicorns, and five of them are in Nigeria. So we know that the possibilities are even bigger.”
Oyedele assured investors and fintech operators of the government’s commitment to maintaining policy consistency and providing regulatory support to encourage further investment and expansion.
“We welcome you to Nigeria. We want you to do more, and we are willing, from the government’s side, to work with you,” he added.
The proposal comes amid expectations of rapid growth in Africa’s cross-border payments market over the next decade. Industry reports project the market will expand significantly as fintech adoption rises, mobile money usage grows, and intra-African trade increases under AfCFTA.
Despite the growth prospects, stakeholders say cross-border payments across Africa continue to face challenges including fragmented financial systems, multiple currency conversions, high transaction costs and settlement inefficiencies.
The merger between Providus Bank and Unity Bank has entered the integration phase following the completion of all legal and regulatory requirements, setting the stage for the emergence of ProvidusUnity Bank Limited.
Recall that the Supreme Court upheld the merger scheme, ordering all of Unity Bank’s assets and liabilities to be transferred to Providus Bank.
The enlarged institution operates as a national commercial bank.
Providus Bank in a statement to customers formally notified them of the announced the successful completion of the legal process backing the merger and assured them that banking operations would remain seamless throughout the integration period.
“We are pleased to announce the final court sanction of the merger between ProvidusBank and Unity Bank. This business combination is set to create a strong institution with broader national reach, deeper capabilities and an even greater commitment to delivering exceptional banking experiences to you,” the bank stated.
According to the bank, the merger marks a significant milestone that will strengthen its capacity to serve customers through improved access to banking services, enhanced technology infrastructure, stronger digital capabilities and expanded product offerings.
“This merger represents an important milestone in our journey and positions us to serve you better through expanded access, enhanced technology infrastructure, improved digital capabilities, improved product offerings, and a wider network of service channels across Nigeria,” the bank said.
Providus Bank also assured customers that the transition would not affect their banking relationship, stressing that all accounts and existing service channels would remain fully operational during the integration process.
“Your banking relationship remains secure and uninterrupted,” the bank assured customers, adding that they would continue to enjoy access to their accounts and banking services through existing channels while integration activities progress.
The bank further noted that customers should expect improved service delivery arising from the merger, supported by stronger capabilities and a wider operational footprint across the country. It added that any actions required from customers during the transition would be communicated clearly and in advance.
Highlighting the strategic importance of the combination, the bank said the next phase of its evolution is geared towards building a stronger institution capable of supporting economic growth while maintaining high service standards.
“This next chapter reflects our commitment to building a stronger institution for customers, supporting economic growth and continuing to deliver the service standards you expect from us,” it stated.
Economic and Financial Crimes Commission (EFCC) and the Corporate Affairs Commission (CAC) have expressed concern over the growing activities of unregistered Point of Sale (POS) operators and warned that they pose significant risks to businesses, the financial system and national security.
The concern was raised on Thursday in Abuja when Senator Ibrahim Adah, chairman of the CAC Board, led a delegation of the commission’s management staff on a courtesy visit to Mr Ola Olukoyede, executive chairman of the EFCC, at the anti-graft agency’s headquarters.
Adah disclosed that only about 20 per cent of POS operators in Nigeria are currently registered with the CAC, describing the situation as a violation of the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s Agent Banking Regulations 2026, which require businesses operating under business names to be duly registered.
He appealed for stronger collaboration between both agencies to enforce compliance and develop a reliable database of POS operators for law enforcement purposes.
According to him, emerging evidence indicates that criminal proceeds, including ransom payments from kidnapping activities, are sometimes channelled through POS terminals.
“We seek closer cooperation in developing a reliable database of POS operators for use by the EFCC and other law enforcement agencies,” Adah said.
He noted that the visit was part of efforts to strengthen partnerships with institutions whose mandates intersect with that of the CAC, particularly in combating financial crimes.
The CAC chairman stressed that the two agencies could not effectively tackle economic and financial crimes in isolation, especially those involving corporate entities.
“When companies are misused for fraud or money laundering, the mandates of both institutions are directly affected. Neither of the two agencies can therefore fight and win the war against economic and financial offences if we work alone,” he said.
Adah identified data and intelligence sharing, public sensitisation on financial risks, and staff capacity building as critical areas for deeper collaboration, reaffirming the CAC’s commitment to protecting the integrity of Nigeria’s financial system.
Responding, Olukoyede described the activities of unregulated POS operators as a major challenge to the country’s financial ecosystem.
“If you do not regulate the activities of such key players, you will be having major problems and challenges within your financial ecosystem,” he said.
The EFCC chairman assured the CAC of the commission’s readiness to strengthen cooperation in tackling economic crimes and promoting regulatory compliance.
He described the CAC as the gateway to economic growth in Nigeria, noting that foreign investors often have their first engagement with the country through the commission.
Olukoyede revealed that the EFCC had established a dedicated desk to handle matters relating to the CAC and disclosed that the commission was currently investigating about 200 companies referred to it by the corporate regulator.
“As a matter of fact, I think we have about 200 companies that you forwarded to us that we are currently investigating and we have made reasonable progress.
“We have made very interesting discoveries, which will help you when you lay your hands on the report,” he said.
He added that many public corruption cases handled by the EFCC involve procurement and contract fraud perpetrated through companies registered by the CAC.
Olukoyede also underscored the need for both agencies to address insider-related challenges and improve internal accountability mechanisms.
On information sharing, he directed officials of both organisations to review and update their existing Memorandum of Understanding to reflect current realities, particularly regarding beneficial ownership information and data protection.
The renewed partnership, according to both agencies, is aimed at deepening corporate compliance, enhancing transparency and safeguarding the integrity of Nigeria’s financial system.
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