Keyamo: Tinubu’s policies de-risk aviation
By Kelvin Osa Okunbor • Okonjo-Iweala urges Single African Air Transport Market Minister of Aviation and Aerospace Development, Mr Festus Keyamo has highlighted steps taken by the Tinubu administration to
By Kelvin Osa Okunbor
• Okonjo-Iweala urges Single African Air Transport Market
Minister of Aviation and Aerospace Development, Mr Festus Keyamo has highlighted steps taken by the Tinubu administration to de- risk the aviation industry in Nigeria.
The move, according to him, is part of efforts to attract global players such as aircraft manufacturers, development finance organizations, aircraft lessors, investment partners and other players into the country.
Keyamo listed the steps to include institutional reforms infrastructure revolution, enhanced regulations and investor confidence which is making global players see Nigeria in a positive light.
He spoke 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 the Nigerian aviation sector.
Keyamo said the Tinubu administration continues to intensify efforts through many windows, including regulatory frameworks, to step up confidence and attract capital into the strategic value chain.
Also, the Director-General, World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has called on Nigeria to champion the Single African Air Transport Market (SAATM) initiative.
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She spoke virtually at the maiden Nigeria Aircraft Acquisition and Investment Summit (NAAIS) 2026.
The summit had: “Unlocking Capital, Confidence and Capacity in Nigeria Aviation Industry” as theme.
Okonjo-Iweala noted that SAATM, unveiled in 2018 as a flagship project of the African Union Agenda 2063, sought to create a single, unified, liberalised aviation market across the entire continent.
She noted that SAATM sought to overcome bilateral arrangements and fragmented national policies and ensure that aviation played a transformative role in Africa’s development than it had played elsewhere.
“Boosting intra-Africa trade, deepening tourism, and giving the continent a connectivity infrastructure to meet its growth trajectory demands Nigeria has both an interest and a responsibility to lead that agenda from the front,” Okonjo-Iweala said.
She said the opportunities in the aviation sector were abundant and the needs were huge while the rewards were massive.
Okonjo-Iweala called on the Federal Government to shift from viewing aviation as a revenue source to seeing it a strategic economic initiative.
She said Nigeria had to move into a high-value, export-oriented economy and stop viewing aviation primarily as a source of tax revenue.
According to her, the aviation sector should be treated as a critical infrastructure, underpinning the African Continental Free Trade Area.
She said: “Air connectivity in Africa is more time-consuming and costly, which can constrain trade.
“Very often, to fly between two African countries, passengers have to go through Europe to catch a connecting flight.
“This adds to the cost of trading or doing business. This is a structural constraint on growth, not a footnote to it.
“This partly explains why intra-Africa trade is still only about 16 per cent and Africa’s share of world trade is about three per cent.”
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She noted that in 2025, air cargo accounted for nearly 30 per cent of global trade by value in spite of representing less than one per cent by goods.
“That asymmetry tells us that aviation does not move all commodities. It moves the highest value, most time-sensitive goods, pharmaceuticals, electronics, parachutes, air-related components, and the small parcels.
“That underpins that global e-commerce economy depends critically on air transport. When air cargo functions well, it does not merely complement trade, it enables it,” the director-general said.
Okonjo-Iweala said that the Nigerian aviation sector had grown in recent decades, with more private airlines along with new airports and related infrastructure.
“The safety record has also improved in the last 19 years, but there is still a long way to go.
“Existing airlines need to upgrade their fleet and scale up their operations to improve their competitiveness.
“It is estimated by IATA that the sector currently supports over 216,700 jobs and contributes less than three billion dollars to gross domestic product.
“International tourists arriving by air contributed an estimated 760 million dollars to the Nigerian economy in 2023. Nigerian airports handled 195,700 tonnes of air freight in 2023.”
The director-general said that a country of Nigeria’s size should be earning much more than that from the sector and creating more jobs.
According to Okonjo-Iweala, for a country seeking to move up the value chain, reliable and affordable air freight infrastructure is not optional but a prerequisite.
She said transforming Nigeria into a high-value trading economy and a gateway between West Africa and global markets could not be achieved without investing in the underlying aviation ecosystem.
She said investment might begin with an increased fleet by private sector operators, but more would need to be done.
She urged that aircraft acquisition must be accompanied by sustained investment in airport infrastructure and air navigation services and complemented by a strong maintenance budget.
“Reliable, cost-efficient operations are what create the conditions for airlines to serve less profitable routes, reduce fares, and grow passenger base.
“In spite of high ticket prices, African airlines earn less than the global average, in terms of profit per passenger. The full cost structure needs to be re-examined.
“Low costs, airport taxes, and charges are estimated to be about 12-15 per cent above the global average.
“The good news is that this transformation need not depend on public expenditure alone or public action,” she said.
She said that public/private partnerships offered a credible and proven path to mobilising private capital for airport modernisation and transport infrastructure.
“The model is straightforward in principle,” said.
She said that where it was structured well, the partnership model had delivered world-class airports and logistics hubs.
“There is no reason Nigeria cannot replicate and surpass those examples, but for this to work, the government’s role should be clear.
“It should maintain a fair and predictable tax regime, advance market liberalisation by opening routes in a reciprocal manner with other countries or regions and removing bilateral restrictions that tend to limit where after-time carriers can fly.
“Most fundamentally, governments must view the aviation sector as the strategic economic enabler it is, rather than as a revenue source to be extracted.
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The Minister said before the administration came on board, the aviation sector grappled with a myriad of challenges.
“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 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 per cent 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 on the occasion, Director-General, Nigeria Civil Aviation Authority (NCAA), Capt Chris Najomo described it as 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.
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“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, the 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.”
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.
Spokesperson of 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 to have confidence in local airlines.
