Nigeria’s Federal Executive Council (FEC) has approved the creation of a new aircraft leasing company aimed at strengthening the country’s struggling aviation sector and easing long-standing capacity constraints faced by domestic airlines.
The decision, announced on Thursday, follows a council meeting chaired by President Bola Tinubu in the capital, Abuja.
According to the government, the initiative will take the form of a private sector-driven Special Purpose Vehicle (SPV) but will operate with official government backing. The goal is to improve access to aircraft for Nigerian carriers, many of which have faced persistent challenges linked to high leasing costs, limited fleet availability, and operational bottlenecks.
Briefing State House correspondents after the meeting, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the new structure is designed to address structural weaknesses that have long hampered airline growth in the country.
He added that the leasing company is expected to reduce dependence on expensive foreign leasing arrangements and improve the competitiveness of local operators in the aviation market.
Industry analysts say Nigeria’s aviation sector has struggled with fleet shortages and currency-related constraints, issues that have often forced airlines to reduce routes or operate below optimal capacity.
Authorities believe the new leasing framework could mark a turning point for the sector, although details on implementation timelines and funding structure are yet to be fully disclosed.
