Keyamo Tasks Carriers on Aircraft Dry Leasing Opportunities

The Minister of Aviation and Aerospace Development, Festus Keyamo, has urged Nigerian airline operators to take advantage of the global aircraft dry leasing opportunities as part of efforts to strengthen the nation’s aviation sector and boost local capacity.

Speaking at the Aviation Stakeholders’ Forum in Abuja, Keyamo stated that the aviation industry must adopt innovative financing models to bridge operational gaps and reduce dependence on expensive wet leases that drain foreign exchange. He said dry leasing presents a viable and sustainable alternative for Nigerian carriers seeking to expand their fleets without the heavy financial burden associated with outright aircraft purchases.

According to the minister, the high cost of aircraft acquisition remains a major challenge for domestic airlines, and adopting the dry lease model would enable them to operate efficiently, increase route coverage, and improve overall profitability.

“The Federal Government is encouraging airlines to explore aircraft dry leasing as a strategic approach to capacity building. With the right regulatory framework and collaboration with financial institutions, dry leasing can become a game-changer for the Nigerian aviation industry,” Keyamo said.

He explained that while wet leasing involves hiring aircraft along with crew and maintenance services—often at higher costs—dry leasing allows airlines to lease only the aircraft, providing them the flexibility to use local crew and maintenance services. This approach, he noted, not only reduces operational expenses but also promotes the growth of indigenous technical expertise and employment opportunities.

“Dry leasing provides an opportunity for Nigerian operators to build technical capacity, reduce foreign exchange exposure, and retain more value within our economy. It will also help airlines become more competitive regionally and globally,” Keyamo added.

The minister revealed that discussions are ongoing with international aircraft leasing firms and financial institutions to establish frameworks that would make dry leasing more accessible to Nigerian airlines. He assured that the government is ready to support airlines willing to adopt this model through favorable policies, guarantees, and partnerships with global lessors.

“We are working on policy adjustments that will make aircraft dry leasing easier and more attractive for Nigerian airlines. The idea is to provide the necessary regulatory clarity and support mechanisms that will attract both local and foreign investors into the aviation sector,” he said.

Keyamo also noted that the government’s renewed focus on dry leasing aligns with President Bola Tinubu’s broader Renewed Hope Agenda, which seeks to promote industrialization, job creation, and infrastructure development across key sectors, including aviation.

In his remarks, the Director-General of the Nigerian Civil Aviation Authority (NCAA), Captain Chris Najomo, said the agency is working closely with the ministry to streamline approval processes and remove bureaucratic bottlenecks hindering aircraft leasing transactions.

“We recognise that timely approvals are critical for airlines seeking to lease aircraft. The NCAA is committed to simplifying the procedures while ensuring safety and compliance remain paramount,” Najomo assured.

Industry experts have welcomed the minister’s call, saying that embracing dry leasing could transform Nigeria’s aviation landscape by enabling airlines to scale up operations and meet rising passenger demand.

Aviation analyst, Group Captain John Ojikutu (rtd), explained that dry leasing would help domestic carriers cut costs significantly. “When airlines depend less on wet leases, they save foreign exchange and have more control over their operations. It’s a strategic move that can reposition the industry for growth,” he said.

Similarly, the Chief Executive Officer of TopBrass Aviation, Captain Roland Iyayi, stated that dry leasing encourages technical independence and helps build local maintenance capabilities. “It’s a win-win model that strengthens our aviation ecosystem. The government’s role should be to create an enabling environment where such agreements can thrive,” he said.

The Aviation Safety Round Table Initiative (ASRTI) also lauded Keyamo’s stance, noting that dry leasing aligns with the long-term sustainability goals of the Nigerian aviation industry. In a statement by its President, Dr. Gabriel Olowo, the group stressed that government support in areas like taxation, forex accessibility, and local training would further enhance the success of dry leasing ventures.

“Airlines need financial and technical backing to enter dry lease agreements effectively. The government’s promise to facilitate this is a step in the right direction,” Olowo noted.

The minister reiterated that the aviation sector holds significant potential to contribute to Nigeria’s economic diversification agenda. He maintained that improving the operational viability of airlines through policies such as dry leasing would help strengthen connectivity, attract investment, and boost tourism.

“Our goal is to ensure that Nigeria becomes the aviation hub of West and Central Africa. By empowering airlines to grow sustainably through mechanisms like dry leasing, we are moving closer to achieving that vision,” Keyamo said.

He added that plans are underway to engage international leasing companies and financial institutions to establish partnerships with Nigerian airlines, ensuring access to favorable leasing terms and modern aircraft fleets.

Keyamo also highlighted the ministry’s ongoing reforms in airport infrastructure, aviation safety, and policy alignment to attract foreign direct investment into the sector. He noted that the government’s collaboration with global stakeholders would open new doors for Nigerian carriers to expand their presence in regional and intercontinental markets.

“As we modernise our airports and regulatory systems, we must also strengthen airline operations through innovative financing options. Dry leasing is one of those tools that can make our carriers more competitive globally,” the minister concluded.

Stakeholders expressed optimism that if effectively implemented, the dry lease policy drive could mark a new era for Nigeria’s aviation industry — one characterised by self-reliance, efficiency, and global competitiveness.