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FG Unveils Nigeria Aircraft Leasing Company to Rescue Local Airlines

The Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, addressing airline operators, investors and aviation stakeholders during the unveiling of the Nigeria Aircraft Leasing Company at a high-level meeting in Abuja on Tuesday.

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The Federal Government has taken a major step toward addressing the persistent aircraft acquisition challenges confronting indigenous carriers with the official unveiling of the Nigeria Aircraft Leasing Company (NALC), a strategic intervention expected to reshape the nation’s aviation industry.

The unveiling, performed by the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, took place during a high-level stakeholders’ meeting held in Abuja on Tuesday.

The event drew airline operators, aviation investors, regulators and other key industry stakeholders, many of whom described the initiative as a long-awaited breakthrough capable of strengthening the operational capacity of Nigerian airlines.

Speaking during the unveiling, the Minister reaffirmed the commitment of the Federal Government to supporting indigenous carriers through practical reforms and sustainable aviation policies.

According to Keyamo, the administration has remained deliberate in implementing initiatives aimed at repositioning the aviation sector and helping local operators overcome longstanding barriers to growth.

“We are not just making mouth; we have been doing our best for the past three years. We are aware that there are so many Air Operator Certificate holders finding it difficult to take off,” the Minister stated.

He explained that the aircraft leasing initiative had been part of Nigeria’s aviation development roadmap since 2015 but suffered delays due to compliance issues surrounding the Cape Town Convention.

The Minister, however, disclosed that the compliance concerns have now been resolved, paving the way for the operational takeoff of the leasing company.

Clarifying the structure of the initiative, Keyamo stressed that the Nigeria Aircraft Leasing Company would operate strictly as a Special Purpose Vehicle (SPV) established to ease access to aircraft leasing opportunities for local airlines.

“Those who are going to manage this initiative are not competitors to the airlines. It is purely an SPV established to help ease aircraft leasing for Nigerian operators. They are not applying for AOCs,” he said.

The Minister further revealed that the African Development Bank is currently processing a Memorandum of Understanding with Nigeria on the initiative, signaling growing international confidence in the project.

He added that President Bola Ahmed Tinubu has directed four strategic ministries, Aviation and Aerospace Development, Finance, Trade and Industry, and Justice, to collaborate on the framework and operational structure of the company.

Keyamo also emphasized that government guarantees under the arrangement would only apply to aircraft repossession obligations, while maintaining that the project remains fundamentally private sector-driven.

Industry stakeholders at the meeting welcomed the development, describing it as a game changer for Nigeria’s aviation sector.

Chief Executive Officer of Ibom Air, Mr. George Uriesi, commended the Minister for what he described as bold and transformative reforms in the aviation industry.

Uriesi noted that the resolution of Cape Town Convention compliance issues, insurance-related reforms and the unveiling of the leasing company represent three major achievements under the current administration.

“If you’re able to pull this over successfully, Honourable Minister, your administration will remain almost unbeaten in Nigerian aviation,” he stated.

Observers believe the Nigeria Aircraft Leasing Company could significantly improve access to modern aircraft, deepen investor confidence and enhance the competitiveness of Nigerian airlines across Africa and the global aviation market.

Cross-section of aviation stakeholders, airline executives and industry regulators during the official unveiling of the Nigeria Aircraft Leasing Company by the Federal Ministry of Aviation and Aerospace Development in Abuja.
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Airlines

Air Peace Names New Flight Operations Chiefs

Captains James Newly Appointed Chief Pilots Adaviruku Onipe and Ikechukwu Paul-Ugochukwu

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Air Peace has appointed Captains James Adaviruku Onipe and Ikechukwu Paul-Ugochukwu as Director of Flight Operations and Chief Pilot, respectively, as the airline strengthens its operational leadership structure.

The appointments, which take effect on November 1, 2026, will see the two experienced pilots assume key responsibilities in flight operations management, pilot training, safety and operational standards.

Onipe currently serves as the airline’s Embraer 145 Fleet Manager and Trainer/Check Airman. With almost 20 years of aviation experience across multiple aircraft fleets, his expertise covers flight safety, crew proficiency, operational efficiency and regulatory compliance.

Paul-Ugochukwu, who has 22 years of experience in the aviation industry, currently serves as a Boeing 777 Type Rating Instructor and Check Airman, with responsibilities that include pilot training, technical proficiency and maintaining operational standards.

The appointments follow the elevation of the outgoing Director of Flight Operations, Captain Augustin Kamano, and the former Chief Pilot, Captain Martin Okunpolor, to higher positions within the Air Peace Group.

Their elevation has created the opportunity for Onipe and Paul-Ugochukwu to take over the respective flight operations leadership positions as the airline continues to develop its management structure.

The changes form part of Air Peace’s efforts to strengthen its pool of experienced aviation professionals and sustain operational standards as its business expands.

The airline said the appointments reflect its commitment to recognising professional experience, promoting career advancement and building leadership capacity to support its operations.

Air Peace Crew

Air Peace congratulated the two pilots on their new positions and expressed confidence in their ability to contribute to the airline’s operational objectives.

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United Nigeria Airlines Targets January Cargo Flights at Ekiti

United Nigeria Airlines Fleet

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United Nigeria Airlines (UNA) plans to commence commercial cargo operations at Ekiti Airport in January 2027, with daily passenger services also in the pipeline as the state government advances infrastructure upgrades.

The airline’s Chairman, Prof. Obiora Okonkwo, announced the plan on Monday during the commissioning of Reeve Energy Limited’s aviation fuel tank farm at the airport, saying the carrier was ready to support the movement of agricultural produce and other goods from Ekiti to markets across Nigeria and, eventually, overseas.

Okonkwo said the airline would be ready to commence cargo services once the state government was prepared to begin commercial exports from the airport. He pledged that United Nigeria Airlines would be the first carrier to lift commercial cargo from the facility when operations begin.

“By January next year, we will activate a cargo section of our flights so that we can work out a deal. As soon as you are ready to start exporting cargo from here, whether to other parts of Nigeria or beyond, we will be ready,” he said.

He added that the airline intended to introduce daily passenger flights to Ekiti, subject to the completion of ongoing airport infrastructure improvements.

The airline chairman described the commissioning of the fuel tank farm as an important development that would support flight operations and provide a foundation for future expansion at the airport.

Okonkwo said reliable aviation fuel supply was particularly important to the airline, which he described as Nigeria’s second-largest consumer of aviation fuel after Air Peace.

He explained that the Ekiti State Government selected United Nigeria Airlines for the partnership after assessing the operational capacity and fleet strength of domestic airlines, rather than following an application or lobbying process by the carrier.

According to him, the airline had sustained its commitment to the state by maintaining services even during periods of low passenger demand.

Ekiti State Governor, Biodun Oyebanji, said his administration was committed to completing the airport’s ongoing infrastructure projects by the end of 2026 to improve its operational capacity and attract further private-sector investment.

Oyebanji said the planned improvements included an upgrade of the airport’s Instrument Landing System (ILS) and the installation of aerodrome ground lighting to support operations beyond daylight hours.

He put the estimated cost of the ground lighting project at more than ₦10 billion, adding that the completed system would enable aircraft to land at the airport at any time, subject to applicable operational and regulatory requirements.

The governor also disclosed that the state government was pursuing an Independent Power Producer arrangement to ensure a reliable electricity supply for the airport and reduce dependence on external power sources.

He commended Reeve Energy Limited for investing in the state and reaffirmed his administration’s commitment to providing an enabling environment for businesses.

The planned cargo service could open additional routes for Ekiti’s agricultural produce and other goods, while the proposed daily passenger flights would improve the state’s air connectivity. Their implementation will depend on cargo-export readiness, infrastructure completion and the relevant operational requirements.

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United Nigeria Airlines Targets ₦20bn Commercial Paper

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United Nigeria Airlines is planning to raise ₦20 billion through its maiden commercial paper issuance to finance expansion of its domestic, regional and international operations, potentially becoming Nigeria’s first domestic airline to access the short-term debt market through the instrument.

The proposed fundraising will be conducted under Series 1 and 2 of the airline’s ₦100 billion commercial paper programme, with maturity periods of 270 days and 364 days, respectively.

According to the airline’s September 2026 investor presentation, the issuance is part of efforts to strengthen its financial position and provide funding for its expansion plans.

Meristem Capital Limited is the lead arranger for the transaction, while Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited will serve as dealers.

To support the fundraising, the airline has obtained credit ratings from Agusto & Co. and DataPro, with both agencies assigning ratings to its short-term and long-term credit profiles.

Agusto & Co. assigned United Nigeria Airlines short-term and long-term ratings of A3 and BBB-, respectively, both with a stable outlook. DataPro assigned short-term and long-term ratings of A1 and BBB, respectively.

The proposed issuance comes as the airline reports significant revenue growth over the past five years. Its revenue increased from ₦10.3 billion in 2021 to ₦90.8 billion in 2025, while profit after tax rose from ₦1.3 billion to ₦23.8 billion over the same period.

The investor presentation also showed that revenue reached ₦95.6 billion in the first half of 2026.

The airline recorded improved financial performance in August, with turnover rising to ₦19.4 billion from ₦14.1 billion in July. It also returned to a net profit of ₦1.2 billion during the month.

The company expressed optimism that its performance would continue to improve in the remaining months of 2026 and beyond.

United Nigeria Airlines currently operates a fleet of 10 aircraft comprising Embraer ERJ-145, Boeing 737-800, Embraer E190 and CRJ900 aircraft. It plans to take delivery of six additional aircraft before the end of the year to support its growth strategy.

The airline serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations.

As part of efforts to expand its market reach and improve access to its services, the carrier has also signed agreements with global distribution systems Amadeus and Sabre, enabling travel agents worldwide to access its ticket inventory and book its flights.

United Nigeria Airlines has maintained International Air Transport Association Operational Safety Audit certification since 2022 and is an IATA member.

In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement, which facilitates cooperation among airlines in handling connecting journeys, and became a full member of the African Airlines Association.

United Nigeria Airlines Fleet

The planned commercial paper issuance would provide the airline with an additional funding channel as it pursues fleet expansion and seeks to strengthen its presence in domestic and international markets.

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