Festus Keyamo, the Minister of Aviation and Aerospace Development, disclosed that the federal government is committed to wooing aircraft leasing companies and manufacturers to bolster the operations of local airlines.
In a post on his official X account, Keyamo responded to critiques of recent Airbus negotiations in France, stating that no airline or government can buy its entire fleet outright. He emphasised the global reliance on aircraft leasing, particularly dry leasing.
- “No airline company in the world or even any Government for that matter can afford to purchase its fleet of aircraft one hundred per cent. The biggest airlines in the world depend on DRY LEASING in particular,” the post read in part.
Recall that Nairametrics earlier reported that Keyamo disclosed that the Federal Government is negotiating with top aircraft leasing firms in France to lease Airbus planes for local airlines in Nigeria.
The Minister highlighted that the absence of favourable dry leasing conditions has been a key contributor to the high failure rate of Nigerian airlines over the past four decades.
He assured that the government is committed to supporting local airlines, not leaving them to navigate these challenges alone.
To enhance this initiative, Keyamo mentioned that the government is proactively reaching out to international aircraft manufacturers and leasing firms, assuring them of the security and safety of their aircraft when leased to Nigerian entities.
He highlighted that the Federal Government is offering guarantees of asset protection for creditors in case of default, adhering to the Cape Town Convention.
This international treaty, which Nigeria has ratified, establishes legal protections for aviation financing and leasing, ensuring a reliable framework for these activities.
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More insights
- Keyamo’s post shed light on the Ministry of Aviation and Aerospace Development’s ongoing negotiations with aircraft leasing companies and manufacturers, indicating that the details will soon be disclosed.
- The Aviation Minister emphasised the Federal Government’s commitment, through the Ministry, to proactively engage with these entities to strengthen Nigeria’s aviation sector. He pointed out the necessity of these actions, citing the current inability of Nigeria to manufacture or purchase its aircraft.
- Furthermore, Keyamo addressed the issue of inadequate Maintenance, Repair, and Overhaul (MRO) facilities in Nigeria, which has been a significant challenge for local airlines.
- He mentioned that the Ministry is actively seeking investors to establish MRO facilities in the country, aiming to enhance the operational capabilities of the aviation industry.
Recommended reading: Keyamo leads talks for Airbus leases to Nigerian airlines in France
