Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, announced that the nation's upcoming aircraft leasing company will permit airlines to conduct transactions and make payments in naira. This move is intended to alleviate a significant hurdle for domestic carriers: the difficulty in accessing aircraft under favorable financial terms, particularly concerning foreign currency requirements.

Speaking at the inaugural African Air Transport Conference in Lomé, Togo, Mr. Keyamo stated that the Nigeria Aircraft Leasing Company will be a privately funded entity. However, it will receive government guarantees to enhance investor confidence and mitigate risks for aircraft owners and financiers.

The initiative has received approval from President Bola Tinubu, and the ministry is currently engaged in discussions with prospective investors. The government plans to retain a minor stake in the company due to the sovereign guarantees it will provide, which are designed to de-risk transactions for lessors and creditors.

A key benefit of this arrangement is that Nigerian airlines will be able to deal with the local leasing company in naira. The leasing company itself will manage the foreign currency obligations associated with acquiring the aircraft. This structure aims to ease the financial burden on airlines, making aircraft acquisition more accessible.

Participation in the leasing company will not be mandatory, allowing airlines the flexibility to seek leases elsewhere if better terms are available. The long-term vision for the platform includes its expansion beyond Nigeria to serve the broader West and Central African regions.

The minister also highlighted Nigeria's adherence to international aviation standards, including the Cape Town Convention and the Irrevocable Deregistration Export Request Authorisation (IDERA), which facilitate aircraft repossession in cases of default.