Aviation financing under pressure from forex, customs issues – Keyamo

By Dickson Omobola

Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has expressed concern over challenges within the country’s aviation financing ecosystem, including customs-related bottlenecks, temporary importation procedures, foreign exchange volatility and inter-agency coordination issues.

He, however, assured stakeholders that Federal Government was actively addressing the challenges through coordinated reforms involving regulatory agencies, judicial capacity development and digitalisation initiatives within the Nigeria Civil Aviation Authority, NCAA.

Keyamo, while reaffirming Nigeria’s commitment to strengthening aviation financing, regulatory reforms and compliance with the Cape Town Convention, CTC, said this as he was addressing global stakeholders at the Aviation Working Group, AWG, General Meeting in London.

His Special Adviser on Media and Communications, Tunde Moshood, in a statement, said the Minister described Nigeria’s recent aviation reforms as a strategic effort aimed at positioning the country as a reliable and competitive destination for aircraft financing and leasing transactions.

According to him, the minister noted that aviation growth in emerging markets like Nigeria was often constrained not by passenger demand, but by limited access to affordable capital.

The statement reads: “The Cape Town Convention was specifically designed to reduce legal uncertainties, strengthen creditor confidence and lower financing costs for operators globally.

“He explained that the reforms have already started yielding tangible benefits within the aviation financing ecosystem, citing recent successful dry lease transactions involving Nigerian carriers and financing institutions as examples of renewed confidence in the Nigerian aviation market.

“While acknowledging the progress made, the Minister candidly identified operational challenges that still exist within the broader aviation financing ecosystem, including customs-related issues, temporary importation procedures, foreign exchange volatility and inter-agency coordination concerns that sometimes affect financing predictability and lease structures.

“However, he assured stakeholders that the Federal Government is actively addressing these challenges through coordinated reforms involving regulatory agencies, judicial capacity development and digitalisation initiatives within the NCAA.

“In a major announcement during the meeting, the Minister also highlighted the recent Federal Executive Council approval for the establishment of a Nigerian Aircraft Leasing Company, an initiative expected to unlock over one billion dollars in future fleet financing capacity while reducing the nation’s dependence on foreign lessors.

“According to him, the proposed leasing company will enable Nigerian airlines to access aircraft on more competitive terms, accelerate fleet modernisation and strengthen operational resilience within the sector.

“The Minister noted that Nigeria’s aviation market, with a population exceeding 200 million people and growing passenger traffic, requires a modern, efficient and financially sustainable aviation system capable of attracting long-term and competitively priced investments.

“He emphasised that sustainable aviation growth can only be achieved through trust in legal systems, confidence in institutions and consistent respect for international obligations.

“Reaffirming Nigeria’s readiness for continued collaboration with international stakeholders, the Minister assured the Aviation Working Group and global financiers that the Federal Government remains open to constructive engagement aimed at strengthening the aviation financing landscape not only in Nigeria but across Africa.

“He concluded by expressing optimism that ongoing reforms and strategic partnerships would transform aviation financing into a catalyst for economic growth and development throughout the continent.”

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