The Minister of Aviation and Aerospace Development, Festus Keyamo, has reaffirmed Nigeria’s strong commitment to advancing aviation financing, deepening regulatory reforms, and strengthening compliance with the Cape Town Convention while addressing global stakeholders at the General Meeting of the Aviation Working Group in London.
Speaking before an audience of international financiers, aircraft lessors, legal experts, and aviation stakeholders, the Minister described Nigeria’s ongoing reforms as a deliberate strategy to position the country as a credible and competitive hub for aircraft financing and leasing.
Keyamo expressed appreciation to the Aviation Working Group for its sustained collaboration, particularly acknowledging the contributions of its leadership in supporting Nigeria’s compliance with the Cape Town Convention.
He noted that Nigeria has made significant strides in implementing the Convention, boosting investor confidence and improving access to aircraft financing for domestic airlines.
According to him, growth in emerging aviation markets is often hindered more by limited access to affordable capital than by passenger demand, underscoring the importance of the Convention in reducing legal risks and lowering financing costs.
The Minister recalled that Nigeria was among the original signatories to the Convention in 2001 and has since domesticated it through national legislation under the Civil Aviation Act.
Highlighting progress, Keyamo revealed that over 80 percent of aircraft on Nigeria’s registry are leased, with expired leases successfully processed and exported without disruption – an indication of growing trust in Nigeria’s aviation framework.
He further disclosed that Nigeria’s compliance score improved significantl from 49 percent to 70.5 per cent in September 2024 following a Practice Direction issued by the Chief Judge of the Federal High Court to strengthen legal enforcement. The subsequent implementation of the Irrevocable Deregistration and Export Request Authorization (IDERA) raised compliance to 75.5 per cent, leading to Nigeria’s removal from the AWG blacklist.
“These milestones were achieved through targeted reforms demonstrating the Federal Government’s commitment to full compliance in both policy and practice”, the Minister stated.
Keyamo noted that these reforms are already yielding results, citing successful dry lease transactions involving Nigerian carriers as evidence of renewed investor confidence.
Despite the progress, he acknowledged existing challenges within the aviation financing ecosystem, including customs procedures, temporary importation issues, foreign exchange volatility, and inter-agency coordination gaps.
He assured stakeholders that the government is actively addressing these issues through coordinated reforms, judicial capacity building, and digital transformation initiatives within the Nigeria Civil Aviation Authority.
In a major announcement, the Minister revealed that the Federal Executive Council has approved the establishment of a Nigerian Aircraft Leasing Company, expected to unlock over $1 billion in future fleet financing and reduce reliance on foreign lessors.
He explained that the initiative will enable Nigerian airlines to access aircraft on more competitive terms, accelerate fleet modernisation, and improve operational efficiency.
Keyamo emphasied that with a population exceeding 200 million and rising passenger traffic, Nigeria requires a modern, efficient, and financially sustainable aviation system capable of attracting long-term investment.
“The Cape Town Convention is more than a treaty – it is a framework for building trust,” he said, reaffirming Nigeria’s commitment to bridging the gap between legal compliance and practical enforcement.
The Minister concluded by reiterating Nigeria’s openness to continued collaboration with global stakeholders, expressing optimism that ongoing reforms will position aviation financing as a key driver of economic growth across Africa.