Nigeria Aircraft Leasing Company Approved by Tinubu Govt

The Federal Executive Council, chaired by President Bola Tinubu, has approved the creation of the Nigeria Aircraft Leasing Company (NALC), a privately funded special‑purpose vehicle (SPV) that will operate commercially with strategic government support.

In a statement released after the Council’s meeting on Friday, Aviation and Aerospace Development Minister Festus Keyamo explained that NALC will be incorporated as an SPV with no direct fiscal commitment from the Federal Government. The government’s role will be limited to providing sovereign guarantees to international lessors and aircraft manufacturers, thereby enhancing security for asset repossession and reducing perceived investment risk. Equity in the company will be held through the Ministry of Finance Incorporated (MOFI).

Keyamo said the SPV is intended to acquire or lease aircraft worldwide for use by Nigerian operators. By centralising leasing activities under a single, credible entity with sovereign backing, local airlines will gain easier access to aircraft and the ability to sub‑lease them domestically. The move is aligned with the Tinubu administration’s broader strategy to increase private‑sector participation, improve aviation infrastructure and position Nigeria as a regional hub.

The establishment of NALC is presented as a “strategic intervention” aimed at stimulating growth, creating employment and ensuring the long‑term sustainability of Nigeria’s aviation sector. According to the minister, the company will strengthen the aviation value chain, promote regional connectivity and boost Nigeria’s competitiveness in the global aviation market.

The approval follows ongoing efforts to modernise the country’s aviation industry, which has faced challenges such as ageing fleets and limited financing options for airlines. By offering a government‑backed leasing platform, the initiative seeks to address financing gaps and attract international investment.

The next steps involve finalising the company’s incorporation, securing the sovereign guarantees and initiating the acquisition of aircraft. Industry observers will watch how quickly NALC can mobilise capital and commence operations, as its success could set a precedent for similar public‑private partnership models in other sectors.