Nigeria has cleared 98 percent of previously trapped airline funds, a major step aimed at restoring investor confidence and unlocking fresh capital into the aviation sector, according to the Minister of Aviation and Aerospace Development, Festus Keyamo.
Speaking at the maiden Nigeria Aircraft Acquisition and Investment Summit in Lagos, Keyamo said the move signals the federal government’s commitment to improving liquidity, ensuring currency convertibility, and guaranteeing the ease of fund repatriation key concerns for international airlines and financiers operating in Nigeria.
He explained that beyond resolving financial bottlenecks, the country’s aviation roadmap must evolve into a broader economic driver.
“It means our aviation strategy must extend beyond passenger traffic improvements to the deliberate development of cargo hubs, cold-chain systems, smart border processes, and airport ecosystems that can support trade, manufacturing, agribusiness, pharmaceuticals, and digital commerce,” he said.
Keyamo emphasized that major airports in Lagos, Abuja, Kano, and Port Harcourt should be repositioned as integrated economic hubs rather than just transit points.
“Aviation is not only about passenger mobility. It is about export competitiveness, pharmaceutical logistics, perishables, e-commerce, high-value manufacturing, and time-sensitive trade,” he added.
The minister noted that Africa’s aviation market is on the brink of significant expansion, driven by rapid urbanisation and a growing middle class.
Citing projections from global aircraft manufacturers Airbus and Boeing, he said the continent will require between 1,205 and 1,460 new aircraft over the next 20 years, alongside about 76,000 aviation professionals.
“These projections show that the centre of gravity of aviation growth is shifting toward emerging markets, and Nigeria, by its scale and economic relevance, must be a principal beneficiary,” he stated.
Despite the optimism, Keyamo identified limited access to affordable aircraft financing as a key challenge for Nigerian airlines, affecting fleet expansion, route development, and competitiveness.
He revealed that the Tinubu administration is addressing the issue by prioritising aviation financing and implementing reforms to de-risk investment in the sector.
According to him, Nigeria has strengthened compliance with the Cape Town Convention and Aircraft Protocol, including the introduction of the Federal High Court Practice Direction in September 2024 and the Irrevocable De-Registration and Export Request Authorisation (IDERA) Advisory Circular in October 2024.
“These reforms enhance investor confidence, reduce leasing costs, and improve access to dry-lease aircraft for local airlines,” he said.
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Keyamo reiterated that the combination of policy reforms and the resolution of trapped funds is positioning Nigeria as a more attractive destination for global aviation investment.
“Capital does not simply chase opportunity; it chases bankable certainty. Nigeria has worked to restore that certainty,” he said.
He added that aligning legal frameworks, financial credibility, and investor protection mechanisms remains central to unlocking sustained growth in the sector.
