The Federal Government of Nigeria has agreed to provide guarantees to aircraft leasing companies for the recovery of their assets leased to Nigerian airlines in the event of a likely default in lease rentals.
Lease rentals are payments made by airlines for the aircraft they hire from leasing companies.
This assurance was given by the Minister of Aviation, Festus Keyamo, during a courtesy visit by officials of Boeing and Aercap, the world’s largest aircraft leasing company.
The government aims to strengthen the capacity of Nigerian airlines to compete globally by providing guarantees to lessors and creating an enabling environment for the aviation industry.
This move is significant for Nigerian airlines as it addresses concerns raised by global lessors, who had unofficially blacklisted Nigerian carriers due to perceived challenges in recovering assets from defaulting airlines in the country.
The government’s commitment to guaranteeing lessors’ assets is expected to pave the way for Nigerian airlines to explore dry lease options and enhance their competitiveness in the international air transport market.
