Push to de-risk Nigerian aviation market for global investors

The Nigeria Aircraft Acquisition and Investment Summit (NAAIS) 2026, which concluded
In Lagos last week, the visit provided a strategic reset for the country’s aviation sector. Moving
away from the high-cost model of outright aircraft purchases, it introduced a structured
leasing and financing frameworks designed to de-risk the Nigerian market for global
investors, writes WOLE SHADARE

Orchestrated by the Minister of Aviation and Aerospace Development, Festus Keyamo, the Nigeria Aircraft Acquisition and Investment Summit (NAAIS) moved beyond policy talk to secure concrete financial and operational commitments.

The summit was designed to solve one of the most persistent pain points for Nigerian carriers: the high cost and difficulty of acquiring modern aircraft.

It moved beyond talk into deal rooms, producing tangible benefits that could reshape the industry’s economics. It crystallised a multi-agency strategy to dismantle these barriers.

The headline achievement of the summit was a landmark agreement between Aircraft Finance Germany (AFG) and Fidelity Bank Plc.

This partnership combines international technical expertise (AFG) with local financial strength to offer sustainable, lease-based financing.

It signals a move away from the outright purchase model—which drains airline cash reserves—toward flexible leasing that allows for faster fleet scaling.

The Central Bank of Nigeria (CBN) pledged to facilitate sector-wide awareness sessions with the Bankers’ Committee to improve local banks’ understanding of aviation finance.

Historically, Nigerian airlines faced high interest rates and country risk when leasing planes abroad. The summit was structured into specialised “Deal Rooms” to ensure actionable results. Five Nigerian operators signed preliminary agreements with manufacturers ATR and Formidion for aircraft leasing and acquisition.

Embraer pledged to open its Export Credit Agency (ECA) financing pathway to Nigerian airlines, providing access to lower-cost international credit.

The National Insurance Commission (NAICOM) is committed to clarifying the 10% local retention policy. This is a major win, as international lessors often require 100% offshore insurance for their multi-million dollar assets.

Discussions advanced between the Federal Airports Authority of Nigeria (FAAN), Afreximbank, and First Metro Infrastructure for an aerotropolis (airport city) project at Lagos Airport, aimed at creating new revenue streams beyond just flight tickets.

A core benefit highlighted was the statistical realisation of Nigeria’s untapped potential. The summit aimed to address these imbalances.

By providing a clear path to fleet expansion, the summit aims to grow Nigeria’s passenger traffic from the current 15 million to a projected 25.7 million by 2029.

The summit served as a platform for the government to demonstrate its seriousness about protecting international assets by reaffirming its adherence to the Irrevocable Deregistration and Export Request Authorisation (IDERA) framework, which guarantees that lessors can safely repossess their aircraft in the event of default. It is a voluntary measure that gives greater security to creditors.

As of April 2026, Nigeria’s compliance rating with the CTC has risen from 49.5% to 75.5%, moving the country off the international watchlist and into the high-compliance category.

The Nigerian Airspace Management Agency (NAMA) presented a roadmap for a “One Flight Information Region (FIR),” moving toward a unified, automated airspace. This reduces operational risk and insurance premiums for airlines.

The Managing Director of NAMA, Farouk Umar Ahmed, highlighted how NAMA is transitioning from fragmented regional operations to a unified, tech-driven “One Flight Information Region (FIR).

He emphasised that surveillance is no longer just about tracking planes; it is a national security priority, adding that NAMA is moving toward an integrated architecture that serves both civil and military needs.

The Director-General of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo has already predicted that these deals will lead to a visible influx of aeroplanes and a stabilised market within the next six months, reinforcing Nigeria’s goal to become the primary aviation hub for West and Central Africa.

Keyamo said these are signals that the centre of gravity of future aviation growth is shifting toward emerging markets, and Nigeria, by scale, geography, population and economic relevance, must be one of the principal beneficiaries.

He explained that for decades, access to affordable and dependable aircraft financing has remained one of the most significant constraints for Nigerian operators, adding that it has limited fleet renewal, constrained route development, weakened competitiveness, and increased operating costs.

The Minister further stated that it is precisely why the Nigerian government has treated aircraft financing not as a private challenge for airlines alone, but as a national challenge.

Specifically, on September 12, 2024, Nigeria issued the Federal High Court Cape Town Convention & Aircraft Protocol Practice Direction, 2024, to fully implement this very important treaty on aircraft leasing, thereby enhancing investor confidence in the nation’s aviation sector.

“On October 16, 2024, Nigeria went a step further by officially issuing the IDERA advisory circular, intended to improve deregistration and export-remedy procedures, thus strengthening the legal framework for aircraft leasing and empowering local airlines to be able to access dry-lease aircraft. It is also aimed at reducing leasing cost and improving global safety ratings.”

These reforms matter because capital does not simply chase opportunity; it chases bankable certainty, and Nigeria has worked to restore that certainty. These are some of the ways we are unlocking capital by aligning law, regulation, financial credibility, and investor protection. It is also why this summit is timely.”

“At this point, we must now move from reforming the framework to structuring the instruments, leases, guarantees, insurance-backed structures, export-credit support, local banking participation, and development-finance partnerships that can translate legal progress into actual fleet growth.”

He noted that capital flows where confidence exists, stating that confidence grows where institutions are credible, rules are predictable, and reforms are sustained.

“That is why we have continued to deepen regulatory and institutional reforms across the aviation ecosystem. Nigeria Civil Aviation Regulations 2023 (Nig. CARs 2023) updated our regulatory framework in line with contemporary ICAO requirements across operations, safety management, airworthiness, aerodrome standards and economic oversight.”

The summit has essentially shifted the narrative from Nigeria being a high-risk market to one that provides bankable certainty. With the second edition already scheduled for April 1–2, 2027, the government is signalling that this structured approach to aviation investment is now a permanent fixture of its economic strategy.

Wole Shadare