How Tinubu administration's policies has reshaped aviation sector , by Keyamo

How Tinubu administration's  policies has reshaped aviation sector ,  by  Keyamo 

Minister of Aviation and Aerospace Development, Mr Festus Keyamo on Wednesday outlined the deliberate steps taken by  the Tinubu administration to de- risk the aviation industry in Nigeria in order to attract global players such as  aircraft manufacturers, development finance organizations, aircraft lessors, investment partners and other players into the value chain.

Keyamo listed the steps to include :  institutional reforms, infrastructure revolution, enhanced regulations and investor confidence , which is making global players see Nigeria in positive light.

He disclosed this at the maiden Nigerian Aircraft Acquisition & Investment Summit in Lagos , where airlines, original equipment manufacturers, lessors, development finance organizations, insurance companies, regulators and others met to examine ways to drive capacity, confidence and capital into Nigerian aviation sector.

Keyamo said the Tinubu administration continues to have intensify efforts through many windows , including regulatory frameworks to step up confidence and attract capital into the strategic value chain.

The Minister said before the administration came on board, the aviation sector grappled with a myriad of challenges.

He went on :"  Financing  has remained one of the most significant constraints for Nigerian operators. It has limited fleet renewal, constrained route development, weakened competitiveness, and increased operating costs. 

That is precisely why this administration has treated aircraft financing not as a private challenge for airlines alone, but as a national challenge.

Under the leadership of President Bola Ahmed Tinubu we have taken deliberate steps to de-risk aviation investment in Nigeria. The most consequential of these has been the strengthening of Nigeria’s implementation of the Cape Town Convention and Aircraft Protocol. 

"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.

" And on October 16, 2024, Nigeria went a step further by officially issuing the Irrevocable De-Registration and Export Request Authorisation (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. 

"Beyond legal reforms, we have made measurable progress on the long-standing issue of trapped airline funds. For instance, IATA reported that Nigeria had cleared 98 percent  of previously blocked airline funds by mid-2024, and later cited Nigeria as a clear example of how backlog resolution can be successfully achieved through constructive engagement and phased repatriation. " " In fact, that action sent an important message to global airlines, financiers, and investors: Nigeria understands that liquidity, convertibility, and repatriation are not side issues; they are foundational to market confidence."

Keyamo said with the interventions put in place by the Tinubu administration, lessors, development partners and  institutional investors are now exploring opportunities to invest in Nigeria.

He said :" Nigeria is ready. We have strengthened our compliance architecture. We have improved creditor assurance. We have demonstrated progress on revenue repatriation. We are supporting local MRO development. We are investing in digital and institutional reform. We are pursuing cargo modernisation. And we are doing so in one of Africa’s most consequential aviation markets. What we seek now is partnership; partnership that unlocks affordable aircraft financing; partnership that supports fleet renewal and expansion; partnership that strengthens maintenance, training and technical capability; partnership that helps Nigeria become not just a market for aviation, but a platform for aviation growth across Africa.

" Nigeria stands today at the threshold of a new aviation era, an era in which capital is more confident, institutions are more credible, and capacity is being deliberately built. Let us seize this moment together. Let us unlock the full potential of Nigeria’s aviation industry. Let us build an ecosystem that is investable, competitive, sustainable and globally relevant

" And let this Summit be remembered as the moment when vision met structure, reform met capital, and Nigeria’s aviation future moved decisively from promise to performance."

Speaking at the summit, Director General, Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo described it a forum aimed 

extracting tangible deliverables that unlock Nigeria’s aviation potential for investment and aircraft acquisition. 

He said the summit created a platform to connect the relevant pillars for the  future growth  of the aviation sector.

Najomo said :" Unlocking capital speaks to the urgent need to address the structural and financial barriers that have long constrained the growth of our airlines. Aircraft acquisition is capital-intensive, and without access to sustainable and affordable financing, fleet expansion and modernization may remain limited. 

"These require coordinated solutions, amongst which must involve strengthening the legal and institutional framework for aircraft financing, while investors and financiers develop innovative solutions tailored to our environment.

"Unlocking confidence is equally critical. Confidence drives investment. It influences the willingness of financiers, lessors, and global partners alike to constructively engage with our market. At the NCAA, we are resolute in abiding by the Cape Town Convention through a firm implementation of the Irrevocable De-registration and Export Request Authorization (IDERA). 

In addition, we are enthroning a robust digitally-driven regulatory system with competent manpower that surpasses the minimum requirements of ICAO and secures Nigeria’s respect in the comity of nations. Strong regulation backed by transparency, predictability, and strict adherence to international standards provides that much needed confidence. 

" Unlocking capacity speaks to our ability, as a nation, to support and sustain growth. This includes operational capacity, technical capability, human capital development, and the infrastructure required to maintain and operate modern fleets efficiently.

" Therefore, to support investment, we have streamlined certification processes, enhanced transparency, and ensured timely decision-making. Predictability in regulation is a major driver of investor confidence, and we are working to strengthen this consistently.

"Nigeria is therefore sending a clear signal to the global aviation finance community .That our market is open, structured, and reform-driven

.That our regulator is proactive, data-driven, and internationally aligned. And that our airlines are ready to engage responsibly and competitively

"This has significantly impacted on the Nigerian aviation market by enhancing the safety and efficiency of aircraft leasing and financing.  IDERA now allows Nigerian airlines to secure more aircraft on dry lease, crucial for expanding fleets and services. 

" Make no mistake about it, NCAA is enforcing IDERA with fidelity, so aircraft financiers and lessors alike have nothing to worry about when it concerns the resolve of the regulator on this issue. 

"On their part, airlines must adopt disciplined and strategic approaches to fleet acquisition. Aircraft selection should align with route structures, market demand, and maintenance capability. Uncoordinated fleet expansion often leads to inefficiencies and increased operational challenges.

"At the same time, national capacity must be strengthened through, for example, the development of local Maintenance, Repair and Overhaul (MRO) facilities. Expanding fleet size without corresponding maintenance capability limits the overall benefits of investment and leads to significant capital outflow."

Speaking at the summit , Chairman, Air Peace, Mr Allen Onyema commended the Tinubu administration for creating a new dawn for aviation in the country 

Onyema said :" A new dawn has come in Nigeria . With the reforms the Tinubu administration is consolidating, we look forward to them being entrenched. "

He assured aircraft lessors of non default in airplane acquisition saying Nigeria is a good place to do business.

On his part, spokesperson I f indigenous carriers, Prof. Obiora Okonkwo said the policies put in place by the Tinubu administration has created goodwill in the International aviation community for Nigeria 

He commended the government for allowing Nigerian banks have confidence in local airlines.