LAGOS, Nigeria (VOICE OF NAIJA) – The Federal Government partnership with financial institutions and leasing companies signals a significant step towards improving aircraft access in Nigeria’s aviation sector
The Chief Executive Officer, Aero contractors company of Nigeria limited, Captain Ado Sanusi highlighted in a virtual press conference that this partnership aims to assure lessors of government support, safeguarding their assets and investments within Nigeria
He said, “The low-hanging fruit for the government to bring stability to the sector is to provide accessible aircraft to aviation companies in Nigeria. The federal government needs a partnership with leasing companies.
“This partnership would ensure sovereignty, providing a guarantee to lessors that they are supported in protecting their assets and investments in Nigeria.
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“The government should be saying things like, “Look, we would do anything to retrieve your assets in the event there is a default, but we don’t want that to happen.”
The CEO emphasised the need for the government to facilitate a strong economy in the financial sector, ensuring access to foreign exchange for easy lease rental payments.
Meanwhile, Minister of Aviation Festus Keyamo continues efforts to rejuvenate Nigeria’s aviation sector for long-term development.
Last month, the minister announced discussions with aircraft leasing and manufacturing companies to encourage local investments in Nigeria’s aviation sector.
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Keyamo emphasized the importance of aircraft leasing, particularly dry leasing, in improving the operations of local airline operators.
He noted that major airlines globally depend on dry leasing because neither airlines nor governments can afford to buy their entire fleet of aircraft outright.
“We are determined to go far and wide to woo aircraft leasing companies and aircraft manufacturers to come to our aid. There is no shame in doing this now since we lack the capacity to produce our own aircraft or to purchase them,” said Keyamo.
In September 2023, Airbus announced that the Nigerian market would need 159 more aircraft by 2024.
Additionally, Africa will require 1,180 more aircraft between 2019 and 2042. Among these, 75% of such aircraft, representing 880, will be single-aisle, and 300 will be wide-body planes.
Nigerian airlines grapple with numerous taxes and charges, resulting in high operational costs, raised airfares, and diminished investment opportunities.
Sanusi emphasises the need to tackle these issues for the sustainable growth of airlines.
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The CEO emphasised the need for collaboration among the Nigeria Customs Service, the Federal Airport Authority of Nigeria, and other relevant stakeholders to collectively promote the growth of the aviation sector.
“Not that by the time you bring the airplane, the customs is there thinking of how the milk money will go back into the government coffers. If you are doing that, you are also killing the sector. We have to put everything together to ensure sustainability in growth,” Sanusi concluded.