The Nigerian aviation sector is poised for a transformative period, marked by the imminent arrival of the first dry-lease aircraft in two decades and the groundbreaking of a state-of-the-art Maintenance, Repair, and Overhaul (MRO) facility. These developments, spearheaded by Air Peace and supported by the government, promise to reshape the industry landscape, reducing operational costs, enhancing competitiveness, and solidifying Nigeria’s position as a regional aviation hub. The arrival of the dry-leased aircraft signifies a renewed confidence in the Nigerian aviation market by international lessors, a trust hard-won through direct government guarantees and stricter adherence to the Cape Town Convention, an international treaty governing the financing of aircraft.
The acquisition of aircraft through dry leasing, where the lessee assumes responsibility for crew, insurance, and maintenance, contrasts with the prevalent and more expensive wet lease arrangements, which include these services. Minister of Aviation and Aerospace Development, Festus Keyamo, played a pivotal role in securing the dry lease, providing assurances to lessors that significantly reduced the financial risk. This intervention has resulted in a lease agreement three times cheaper than previous wet lease arrangements, offering much-needed financial relief to Nigerian airlines burdened by high operating costs. This cost reduction will have a cascading effect, potentially translating into lower airfares for passengers and improving the overall affordability of air travel within Nigeria. The shift to dry leasing represents a significant step towards greater autonomy and control for Nigerian airlines over their operations, allowing for better fleet management and optimized resource allocation.
Concurrent with the dry lease acquisition, Air Peace, Nigeria’s largest airline, has embarked on the construction of a N32 billion MRO facility at the Murtala Muhammed International Airport in Lagos. This ambitious project, situated on a 34,000-square-meter plot, is expected to generate approximately 50,000 jobs and drastically alter the maintenance landscape for Nigerian airlines. Currently, the absence of local MRO facilities compels airlines to send their aircraft abroad for maintenance, incurring substantial costs in foreign currency and contributing to capital flight. The new facility will not only alleviate these financial burdens but also position Nigeria as a competitive MRO destination, attracting international airlines seeking cost-effective and efficient maintenance services. The project enjoys strong backing from the government, with Minister Keyamo championing the initiative as a national treasure and a symbol of the government’s commitment to supporting domestic airlines.
Allen Onyema, Chairman and Chief Executive Officer of Air Peace, highlighted the transformative impact of the MRO facility, stating that it will save Nigerian airlines significant sums previously spent on overseas maintenance, including spare parts, logistics, and services. He cited Air Peace’s own experience, revealing that the airline spent over N180 billion on foreign maintenance in 2024 alone. This new facility allows airlines to retain this capital within the country, bolstering the Nigerian economy and strengthening the naira. Furthermore, the MRO is anticipated to stimulate growth in related industries such as logistics, engineering, training, and hospitality, creating a ripple effect of economic benefits across multiple sectors. The collaboration with Brazilian aircraft manufacturer Embraer, which will provide technical expertise, further enhances the project’s potential, ensuring access to cutting-edge technology and best practices in aircraft maintenance.
The MRO project is not merely an investment in infrastructure but represents a strategic move to empower Nigerian airlines. By reducing reliance on foreign MROs, the facility will significantly lower operational costs, contributing to greater profitability and competitiveness for domestic airlines. The Bank of Industry’s support for the project underscores its economic significance and alignment with the bank’s mandate to foster industrial growth. Ifeoma Uz’Okpala, Executive Director for Large Enterprises at the Bank of Industry, emphasized the project’s potential to enhance efficiency, lower costs, and positively impact millions of Nigerians. The availability of world-class aircraft servicing within Nigeria is a key factor in the long-term sustainability and growth of the aviation sector.
The combined impact of the dry-lease aircraft acquisition and the MRO facility construction signals a turning point for the Nigerian aviation industry. These developments represent a concerted effort to address long-standing challenges, including high operating costs, dependence on foreign services, and the resulting capital flight. The Minister of Aviation’s unwavering support for domestic airlines and his active involvement in securing favorable lease agreements underscore the government’s commitment to fostering a thriving aviation sector. These initiatives are expected to create a more level playing field for Nigerian airlines, enabling them to compete effectively with international carriers and contribute significantly to the national economy. As Air Peace leads the way in these transformative endeavors, other airlines are expected to follow suit, further solidifying Nigeria’s position as a major player in the African aviation landscape. The future of Nigerian aviation appears bright, fueled by strategic investments, government support, and a renewed focus on self-reliance.
