Keyamo woos global financiers, stakeholders, says Nigeria open

By Chinelo Obogo

The Minister of Aviation and Aerospace Development, Festus Keyamo, has reiterated Nigeria’s commitment to strengthening aviation financing, regulatory reforms and compliance with the Cape Town Convention (CTC) while addressing global stakeholders at the Aviation Working Group (AWG) General Meeting in London.

Speaking before an audience of financiers, aircraft lessors, legal experts and aviation stakeholders in London, 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.

Delivering his speech at the meeting, the Minister expressed appreciation to the Aviation Working Group for its consistent support and collaboration with Nigeria, particularly acknowledging the role of Jeffrey Wool and the AWG leadership in promoting and enhancing Nigeria’s compliance with the Cape Town Convention.

According to the Minister, Nigeria’s aviation sector under his leadership has witnessed progress in CTC implementation, resulting in improved investor confidence and better access to aircraft financing opportunities for domestic operators. He noted that aviation growth in emerging markets like Nigeria is often constrained not by passenger demand, but by limited access to affordable capital, stressing that the Cape Town Convention was specifically designed to reduce legal uncertainties, strengthen creditor confidence and lower financing costs for operators globally.

The Minister recalled that Nigeria was among the original signatories to the Cape Town Convention during the Diplomatic Conference held in Cape Town in 2001 and subsequently domesticated the Convention through national legislation under the Civil Aviation Act.

Highlighting Nigeria’s progress under the Convention, the Minister revealed that over 80 percent of aircraft operating within the Nigerian registry are acquired through lease arrangements, adding that most leased aircraft whose lease terms expired were successfully deregistered and exported without hindrance, demonstrating Nigeria’s growing reputation as a favourable CTC-compliant destination.

He further disclosed that Nigeria’s Cape Town Convention compliance score significantly improved from 49 percent to 70.5 percent in September 2024 following the signing of a new Practice Direction by the Chief Judge of the Federal High Court, which strengthened legal enforcement mechanisms in aviation-related matters.

The Minister added that the subsequent operationalisation of the Irrevocable Deregistration and Export Request Authorization (IDERA) further raised Nigeria’s compliance score to 75.5 percent, ultimately leading to the country’s removal from the Aviation Working Group blacklist. “These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government’s commitment to implementing the Cape Town Convention both in substance and in practice,” the Minister stated.

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 Nigeria Civil Aviation Authority (NCAA).

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.

“The Cape Town Convention is more than a treaty. It is a framework for building trust,” the Minister declared, adding that Nigeria remains committed to bridging the gap between legal compliance and practical enforcement.

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.