The Federal Government has approved the establishment of a Nigerian Aircraft Leasing Company as part of efforts to strengthen the country’s aviation sector.

The approval was granted by the Federal Executive Council (FEC) following a meeting presided over by President Bola Ahmed Tinubu. The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that the initiative is aimed at improving access to aircraft for domestic and regional airlines.

According to the minister, the new company will operate as a private-sector-led Special Purpose Vehicle (SPV) with government backing. It is expected to provide a structured and sustainable platform for airlines to lease modern aircraft, reducing dependence on foreign lessors.

Keyamo described the development as a major milestone and a “game changer” for Nigeria’s aviation industry, noting that it will address long-standing challenges faced by local carriers in accessing aircraft on competitive terms.

The initiative is also expected to enhance operational efficiency, boost the growth of domestic airlines, and position Nigeria as a hub for aviation financing within Africa.