Nigeria, Boeing sign deal to stem $200 million annual overseas aircraft repairs

• Minister unveils gains of Nigeria’s first int’l airshow

The Federal Government has signed agreements with aircraft giant, Boeing and Cranfield University to establish state-of-the-art aircraft maintenance facility otherwise known as aircraft Maintenance Repair Overhaul (MRO) saying it would help in reducing the $200 million annual capital flight for aircraft overseas.

The government disclosed that Aero Contractors and XEJet are leading this transformation with new hubs in Lagos and Abuja.

President Bola Tinubu who was represented at the first ever Nigeria International Airshow in Abuja by the Secretary to the Government, Senator George Akume, remarking that the country’s aviation industry had come a long way as the nation recently celebrated 100 years of aviation history, with the airshow marking a new chapter.

The absence of functional MRO facilities in Nigeria is a major driver of capital flight in the nation’s aviation sector. Nigerian airlines are compelled to take their aircraft abroad for essential maintenance checks, which results in a significant outflow of foreign exchange.

Highly impressed with how the sector had faired, particularly on passenger growth in the past few years, the President stated that Nigeria handled 15.89 million passengers in 2023, stressing that projections by the Nigerian Civil Aviation Authority (NCAA) show this will rise to 25.7 million by 2029, with annual revenue expected to reach $2.58 billion.

Tinubu disclosed that the Federal Government is investing heavily in aerodrome modernization, hinting that Six major airports and multiple runways are undergoing upgrades, including a ₦712 billion refurbishment of Lagos Murtala Muhammed Airport.

He said, “Nigeria now ranks number one in Africa for compliance with international aviation standards, improving its Cape Town Convention score from 49.5% to 75.5%, enabling airlines to access low-cost aircraft financing. Aviation now contributes 2.5% to Nigeria’s Gross Domestic Product, supported by 20 airports, 23 domestic airlines, and thousands of skilled professionals.”

“Our goal is clear: to make Nigeria the aviation hub of West and Central Africa. Through public-private partnerships, investments in training centers, and plans for aircraft component manufacturing, we are building a sustainable ecosystem that creates jobs, drives innovation, and strengthens our economy.”

Minister of Aviation and Aerospace Development, Festus Keyamo stated that for the first time, Nigeria, the aviation hub of West Africa and the gateway to Africa’s largest economy hosted world-class airshows—platforms where aviation innovation, investment, technology, policy, and partnerships converge.

“For decades, the question has been asked: When will Nigeria take its rightful place in the global aviation showcase circuit? Today, with this inaugural Airshow, we provide a clear and confident answer. This is our first attempt. It will not be perfect. We are taking baby steps, but we are taking them with courage, conviction, and clarity of purpose.”

“As with every great beginning, we will learn from this experience, we will improve, and we will build upon it until the Nigeria International Airshow becomes a permanent fixture on the global aviation calendar—standing shoulder to shoulder with Paris, Dubai, Farnborough, and Singapore”.

The airshow, the Minister said is anchored on the vision of President Tinubu, for a modern, safe, secure, globally competitive aviation industry—one that drives economic growth, strengthens national security, supports tourism, and positions Nigeria as Africa’s aviation hub.

Under the Renewed Hope Agenda, he said aviation has emerged as one of the fastest-advancing sectors, with transformative milestones that are reshaping Nigeria’s status as a regional powerhouse.

As part of the sector’s achievements, the Minister said Nigeria has significantly enhanced its global standing in aircraft financing through the recent, effective implementation of the Cape Town Convention (CTC) and the Aircraft Protocol, leading to a notable increase in Nigeria’s Cape Town Compliance Index score.

As a major milestone in this achievement, he said is the operationalisation of the Irrevocable Deregistration and Export Request Authorisation (IDERA) by the Nigerian Civil Aviation Authority (NCAA), which now ensures swift, transparent deregistration and repossession of aircraft by lessors and financiers in cases of default.

Additional legal reforms, he stated have boosted investor confidence, reduced risk perceptions, and expanded access to aircraft leasing and financing for Nigerian operators.

“This Airshow represents more than an event; it is a statement of intent. It is a bold declaration that Nigeria is ready to lead, innovate, and compete on the global stage; it is a platform for discovery, investment, and collaboration. Here, global manufacturers, investors, regulators, airlines, innovators, and aviation enthusiasts will gather to explore opportunities, display cutting-edge technology, and shape the future of flight.”

“It is also a platform for young Nigerians to see what is possible—to be inspired by aerospace engineering, aviation technology, defence systems, drones, and the limitless universe of opportunities within the sector.’

Wole Shadare