Nigeria launches naira-based aircraft leasing company to ease forex pressure on airlines
Festus Keyamo, Minister of Aviation and Aerospace Development, announced Nigeria Aircraft Leasing Company will let local airlines acquire aircraft using naira instead of dollars, addressing forex scarcity and exchange rate risks. Speaking at the inaugural African Air Transport Conference in Lomé, Togo, he said the privately funded venture with government guarantees aims to make aircraft leasing more accessible for Nigerian carriers.
The company will leverage President Tinubu’s approval, sovereign guarantees to reduce investor risks, and potential tax holidays to attract funding. Airlines can transact in naira at local rates while the leasing firm handles foreign currency obligations, utilizing Nigeria’s implementation of the Cape Town Convention and IDERA for streamlined deregistration if lessees default. Participation remains voluntary, with airlines free to seek better terms elsewhere.
Keyamo emphasized the initiative targets airlines’ biggest challenge—affordable aircraft access—and plans to expand the platform across West and Central Africa eventually. For Nigerian airlines, this offers a local alternative to dollar-dependent leases that currently expose them to volatile forex markets and payment delays.
Will domestic carriers adopt this naira-based option to stabilize their fleet costs, or will they wait to see how effectively the government guarantees reduce lessor risks in practice?