The Minister of Aviation and Aerospace Development, Festus Keyamo, told global financiers and lessors in London on Wednesday that Nigeria is now a viable destination for aircraft financing and leasing, citing sweeping reforms that have lifted the country’s Cape Town Convention compliance score to 75.5%.
This is contained in a statement signed and forwarded to journalists in Abuja by Tunde Moshood, Special Adviser On Media and Communications to the Minister.
Speaking at the Aviation Working Group General Meeting, Keyamo said the Federal Government’s push to strengthen regulatory enforcement and legal certainty was designed to cut financing costs and restore investor confidence in Nigeria’s aviation sector.
“Nigeria’s aviation growth is rarely limited by passenger demand. It’s constrained by access to affordable capital,” Keyamo said. “The Cape Town Convention exists to reduce legal uncertainty, strengthen creditor confidence and lower those costs.”
He credited the improvement to targeted reforms over the past year. Nigeria’s compliance score rose from 49% to 70.5% in September 2024 after the Federal High Court’s Chief Judge signed a new Practice Direction strengthening enforcement in aviation disputes. The score climbed further to 75.5% following the operationalisation of the Irrevocable Deregistration and Export Request Authorisation, or IDERA. The progress led to Nigeria’s removal from the Aviation Working Group blacklist.
Keyamo thanked AWG leadership, particularly Secretary Jeffrey Wool, for supporting Nigeria’s compliance drive. He noted that over 80% of aircraft on the Nigerian registry are acquired through leases, and that expired leases have been deregistered and exported without hindrance in recent cases.
The reforms are already translating into deals, he said, pointing to recent dry lease transactions between Nigerian carriers and international financiers. Challenges remain, including customs procedures, foreign exchange volatility and gaps in inter-agency coordination.
“The Federal Government is addressing these through coordinated reforms, judicial capacity building and digitalization at the Nigeria Civil Aviation Authority,” Keyamo said.
He announced that the Federal Executive Council has approved the creation of a Nigerian Aircraft Leasing Company. The initiative is projected to unlock over $1 billion in fleet financing and reduce reliance on foreign lessors by giving local airlines access to aircraft on more competitive terms.
With a population of over 200 million and rising passenger traffic, Nigeria requires a modern, financially sustainable aviation system, Keyamo said.
“The Cape Town Convention is more than a treaty. It is a framework for building trust,” he said. “Nigeria is committed to bridging the gap between legal compliance and practical enforcement.”
He closed by reaffirming Nigeria’s openness to partnerships with the Aviation Working Group and global financiers to strengthen aviation financing across Africa.
