Strategic Initiative to Boost Nigerian Aviation
The Federal Government of Nigeria has unveiled plans to establish an aircraft leasing company, a move aimed at significantly bolstering the capabilities of local airlines. This initiative is designed to act as a bridge between Nigerian carriers and international aircraft lessors, with the government offering a sovereign guarantee to facilitate smoother transactions. The goal is to empower local airlines by reducing their burden in navigating complex global markets.
Festus Keyamo, the Minister of Aviation and Aerospace Development, revealed this development during the ceremonial arrival of Air Peace’s first dry lease aircraft, a Boeing 737-700, at Murtala Muhammed Airport Terminal 2 in Lagos.
Keyamo emphasized that the new aircraft leasing company would enable local airlines to access aircraft without having to engage directly with international lessors. “We want to put an aircraft leasing company in place, so that Nigerian airlines will not be the ones negotiating with the world,” he stated. He added, “We don’t have to walk in silence again. The airlines don’t need to walk around the world looking for aircraft. Government must take care of that responsibility.”
With the government’s sovereign guarantee, the project is expected to attract international investors, creating a pool of resources that can support local airlines. The leasing company will form a capital base, with local airlines given priority access to these resources. “This pool will form a capital base. No other person can be the off takers before the local airlines. This will make life easy for the airlines. We’ll be knocking on the doors of aircraft lessors and manufacturers very soon to talk business. We are here to support the local airlines.”
Impact on the Nigerian Aviation Sector
The establishment of the aircraft leasing company is expected to have a significant impact on the Nigerian aviation sector. It will enable local carriers to compete more effectively with their international counterparts. With the government’s support, Nigerian airlines will be able to access modern, fuel-efficient aircraft, enhancing their operational efficiency and safety standards.
Keyamo described the arrival of the dry lease aircraft for Nigeria and the aviation industry as a momentous occasion. “This is a momentous occasion for Air Peace and the Nigerian aviation industry,” he said. “It demonstrates the government’s commitment to supporting local carriers and promoting the growth of the aviation sector.”
Keyamo commended Air Peace for its discipline and financial prudence, which have enabled the airline to achieve this significant milestone. He also highlighted the need for local airlines to acquire more aircraft to compete effectively in the international market. “There is a need for the acquisition of more wide-body aircraft by local operators to compete in the international space,” Keyamo stated.
Air Peace’s Role in the Aviation Sector
Allen Onyema, Chairman of Air Peace, shared insights into the journey of securing an aircraft through dry lease. He noted that the process began at the minister’s office, where the importance of a vibrant aviation sector was recognized. “The minister has always been willing to partner with local airlines, leasing companies, and the Nigeria Civil Aviation Authority (NCAA) to ensure Nigeria has a chance to take its rightful place in commercial aviation in Africa,” Onyema said.
Onyema emphasized that Air Peace has been diligent in ensuring its aircraft are properly maintained. “We make sure that our maintenance is top-notch. We are here on behalf of other Nigerian airlines. We are carrying the visions and aspirations of this country and if we fail, it will be a disgrace.” He expressed confidence in the support received from all arms of government and the Nigerian public, stating, “I believe we won’t fail our country.”
Onyema praised Festus Keyamo for his relentless efforts in supporting local airlines. “We need wide-bodied aircraft. Like him or hate him, the minister has changed the face of the country’s aviation industry. In the eight years before he came, it was a struggle for Nigerian airlines. When the minister came on board, he noticed a gap and fixed it.”
Industry Perspectives and Support
Moore Ibekwe, Junior Sales Director, Africa Region, Boeing Commercial Airplanes, shared his perspective on the significance of the event. Three years ago, when he took up the job, only himself and one of his senior finance directors believed that this day could happen. “However, I want to thank everyone because we continue to push. They were open to tell us what it would take for us to get here, how we can get aircraft into Nigeria, and I see this as the beginning. Yes, it’s one aircraft, but I can tell you this is the opening point for a better aviation sector,” Ibekwe said.
He emphasized the importance of Nigeria taking its rightful place in aviation, with Air Peace setting the pace. “Air Peace plays a pivotal role in the Nigerian economy. This is about the region. This is about Africa. This is about us creating opportunities for the future. Air Peace hires or employs thousands of people, and their families depend on the airline for their livelihood. And it’s important that we have to support the industry here,” Ibekwe added.
Attendees at the Event
The event was attended by several key figures, including Chris Najomo, Director General of the Nigeria Civil Aviation Authority; Bunmi Kuku, Managing Director of the Federal Airport Authority of Nigeria; Peter Ryan, Irish Ambassador to Nigeria; and Kevin Ugwuoke, Financial partners – Executive Director Risk Management at Fidelity Bank, who was represented by Kenneth Opara, the Executive Director of the bank, among others.