KEYAMO: FOREX, CUSTOMS ISSUES STRAIN AVIATION FINANCING
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By; Sunmola Gamiyat
The Minister of Aviation and Aerospace Development, Festus Keyamo, has raised concerns over challenges affecting Nigeria’s aviation financing framework, including customs bottlenecks, temporary importation processes, foreign exchange instability, and coordination gaps among government agencies.
He, however, assured industry stakeholders that the Federal Government is actively implementing reforms to address the issues through improved regulatory cooperation, judicial capacity building, and digital transformation initiatives within the Nigeria Civil Aviation Authority (NCAA).
Keyamo made this known while speaking at the Aviation Working Group (AWG) General Meeting in London, where he reaffirmed Nigeria’s commitment to strengthening aviation financing, regulatory reforms, and full compliance with the Cape Town Convention (CTC).
According to a statement by his Special Adviser on Media and Communications, Tunde Moshood, the Minister described ongoing reforms as part of efforts to position Nigeria as a credible and attractive destination for aircraft leasing and financing.
He noted that aviation growth in emerging economies like Nigeria is often limited not by demand, but by restricted access to affordable capital.
Keyamo explained that the Cape Town Convention was designed to reduce legal risks, boost creditor confidence, and lower financing costs for operators globally.
He added that recent reforms have begun to yield positive results, citing successful dry lease arrangements involving Nigerian airlines and financing partners as evidence of renewed investor confidence.
While acknowledging progress made so far, the Minister admitted that operational challenges persist, particularly around customs processes, temporary importation procedures, forex volatility, and inter-agency coordination, all of which can affect financing stability and lease agreements.
He assured stakeholders that the government is addressing these concerns through coordinated reforms, digitalisation efforts, and strengthened institutional frameworks within the aviation sector.
Keyamo also announced Federal Executive Council approval for the establishment of a Nigerian Aircraft Leasing Company, projected to unlock over $1 billion in fleet financing and reduce dependence on foreign lessors.
He said the initiative would help local airlines access aircraft on better terms, support fleet expansion, and improve operational efficiency.
The Minister stressed that Nigeria’s large population and growing passenger demand require a modern, financially sustainable aviation system capable of attracting long-term investment.
He further emphasised that sustainable growth in the sector depends on strong legal systems, institutional trust, and adherence to international obligations.
Reaffirming Nigeria’s openness to global partnerships, Keyamo assured international financiers and the Aviation Working Group of the country’s commitment to improving the aviation financing environment.
He expressed optimism that ongoing reforms and partnerships would position aviation financing as a key driver of economic growth across Nigeria and the wider African continent.
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