FG Unveils Aviation Reforms, Targets Aircraft Financing Hub Status
By Stella Enenche, Abuja
The Federal Government has rolled out reforms aimed at repositioning Nigeria’s aviation sector as a leading hub for aircraft financing and investment.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Wednesday at the Nigeria Aircraft Acquisition and Investment Summit (NAAIS) in Lagos.
Delivering a keynote address themed “Unlocking Capital, Confidence and Capacity in Nigeria Aviation,” the minister said the government was shifting from policy formulation to the implementation of practical reforms designed to boost investor confidence and expand industry capacity.
Keyamo highlighted measures taken to address long-standing challenges in aircraft financing, particularly the strengthened implementation of the Cape Town Convention and its Aircraft Protocol.
He noted that the issuance of Federal High Court Practice Direction and the Irrevocable De-Registration and Export Request Authorisation (IDERA) Advisory Circular in 2024 had improved the legal framework for aircraft leasing, reduced risks, and enhanced access to dry-lease aircraft.
He further revealed that about 98 per cent of previously trapped airline funds had been cleared, a development acknowledged by the International Air Transport Association.
According to him, the move has strengthened Nigeria’s financial credibility and restored investor confidence.
“Capital flows where confidence exists, and confidence grows where institutions are credible and reforms are sustained. Nigeria has worked deliberately to restore that confidence,” he said.
The minister added that the government is developing practical financing instruments, including lease structures, guarantees, insurance backed frameworks, and partnerships with export credit agencies and development finance institutions to support fleet expansion and modernisation.
He also cited ongoing investments in aviation infrastructure and human capital development, including the upgrade of key airport facilities in Lagos and the establishment of Maintenance, Repair and Overhaul (MRO) centres by Air Peace in Lagos and XEJET in Abuja.
These, he said, would reduce dependence on foreign services and retain economic value within the country.
In a remark on behalf of the Permanent Secretary, Mahmud Kambari, the Director of Air Transport Management, Mohammed Ahmed Tijani, said the ministry remains committed to policy consistency, regulatory transparency, and ease of doing business.
He outlined initiatives such as improved access to long-term financing, regulatory streamlining, digital transformation, and strengthened Public-Private Partnerships (PPPs) to enhance infrastructure and service delivery.
Kambari also disclosed plans to modernise air navigation systems using advanced Communication, Navigation and Surveillance/Air Traffic Management technologies to improve safety and efficiency.
Meanwhile, the Director-General of the Nigerian Civil Aviation Authority, Capt. Chris Najomo, reaffirmed the agency’s commitment to global standards and effective regulatory oversight, particularly in implementing IDERA provisions.
Similarly, the Managing Director of the Nigerian Airspace Management Agency, Engr. Farouk Ahmed Umar, stressed the importance of safe and technologically advanced air navigation systems in sustaining investment and growth in the sector.
Stakeholders at the summit agreed that Nigeria’s aviation industry is entering a new phase marked by stronger institutions, improved regulatory certainty, and expanding investment opportunities across aircraft acquisition, airport development, cargo logistics, and training.
