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The permanent secretary, Federal Ministry of Aviation and Aerospace Development, Mahmud Adam Kambari, has said the proposed Aircraft Leasing Firm will solve the challenges of flight cancellations, delays and crash the price of air tickets. Kambari stated this Monday, when members of Abuja Transportation and Aviation Correspondents Association (ATACA), paid him a courtesy visit in his office in Abuja. Speaking during the visit, the permanent secretary said the minister of aviation and aerospace development, Festus Keyamo is doing a lot to bring development to the aviation sector and with the leasing firm coming up soon, a whole lot of flight operations challenges would be addressed. The permanent secretary also reaffirmed the ministry’s commitment to sustaining a cordial and productive relationship with the Abuja Transportation and Aviation Correspondents Association (ATACA), assuring members of continued cooperation and support. He emphasized that his assumption of office would not alter the longstanding partnership between the ministry and the Association. He pledged to strengthen the existing relationship and ensure that members of the media continue to play their vital role in promoting the activities and achievements of the aviation sector. Kambari also encouraged members to sustain the spirit of unity, cooperation, and professionalism that has distinguished the association over the years. He commended ATACA for the visibility and extensive media support it has consistently provided to the minister of Aviation and Aerospace Development and the Ministry. He noted that the minister, Festus Keyamo remains committed to transforming Nigeria’s aviation sector through strategic reforms and innovative policies. Earlier, the chairman of ATACA, Ejike Omeje Ejike, thanked the permanent secretary for receiving members of the Association and granting them the opportunity for a familiarisation visit. He explained that ATACA comprises over 40 correspondents covering the transportation and aviation sectors and highlighted the association’s role in promoting informed reportage of developments within the industries. The chairman also presented two major requests to the permanent secretary: support for ATACA’s Annual Seminar and the inclusion of members of the association in both local and foreign official trips of the ministry to strengthen media coverage of the sector.

Pressure is mounting within Nigeria’s aviation ecosystem as stakeholders intensify calls for a restructuring of revenue remittance rules governing aviation agencies. The debate has been reignited by Managing Director of Flight & Logistics Solutions Ltd, Amos Akpan, who argued that the current financial framework is no longer sustainable for critical aviation institutions. According to him, the federal government should significantly adjust the remittance structure under the Single Treasury Account to ensure operational survival and infrastructure renewal across the sector. “The federal government should release from the single treasury account 80% of earnings from aviation agencies back to them,” he said. “The current 50% they are receiving is not sufficient to maintain and upgrade their systems and facilities. They are supposed to be cost recovery not revenue generating institutions.” That position now sits at the centre of a widening debate across Nigeria’s aviation ecosystem, where financial pressure is reshaping relationships between regulators, airlines and service providers. The sector is increasingly marked by rising tensions, cash shortages and fragmented policy responses. Industry stakeholders argue that the ecosystem is now operating under severe financial contraction. However, the growing disputes between agencies and operators only highlight deeper structural weaknesses rather than isolated conflicts. At the centre of regulatory coordination is the Nigeria Civil Aviation Authority, which continues to face pushback from airlines over charges, including the controversial 5% Ticket Sales Charge (TSC). Meanwhile, airlines argue that rising operational costs are pushing them toward unsustainable territory. Mr Akpan described the situation as systemic rather than sectoral. According to him, nearly every stakeholder in the aviation ecosystem is under financial stress. “It’s not only the NCAA versus airline operators,” he explained. “The entire aviation industry seems to exhibit symptoms of financial contraction. The industry appears to be constricting financially. Ecosystem Pressure Spreads Across Agencies and Airlines The financial strain is not isolated to airlines alone. Ground handling companies are reportedly seeking settlement of nearly N9 billion in outstanding payments. At the same time, aviation agencies continue to struggle with operational funding gaps. The Nigerian Airspace Management Agency has also argued for increased service charges to match rising operational costs, reflecting broader fiscal stress across the ecosystem. Domestic carriers remain under pressure from fuel price spikes, maintenance expenses and foreign exchange instability. Operators say they are unable to fully transfer costs to passengers without risking reduced demand. Mr Akpan emphasised that the aviation ecosystem functions through interdependence. Agencies depend on airlines for revenue, while airlines rely on agencies for regulation and safety oversight. “It’s an ecosystem of interdependence,” he said. “Each member needs the support of one another to remain relevant and sustain its existence.” Fragmented Fixes Keep the Ecosystem Under Strain Mr Akpan criticised what he described as short-term interventions that fail to resolve structural issues. He argued that repeated palliatives have not restored profitability across the aviation ecosystem. “Patch one hole today, another hole bursts tomorrow,” he warned. “The tube should be replaced.” He listed previous measures such as debt reductions for airlines, repayment negotiations with NCAA, incentives for ground handlers, aircraft leasing proposals and infrastructure rehabilitation. However, he argued that these efforts remain disconnected. According to him, the real solution lies in attracting long-term investment into the aviation ecosystem rather than relying on temporary financial fixes. To achieve this, he recommended stronger corporate governance, investment guarantees and improved return-on-investment clarity for investors. He pointed to aviation growth models in Rwanda, Ethiopia and Ghana as examples Nigeria could study. “Investors and Investment institutions can sniff out areas and projects to place their monies. They understand risks and the environment. Make it attractive for them and they will come. They are investing in Rwanda’s aviation, in Ethiopia’s aviation, in Ghana’s aviation.” Rethinking the 5% Collection Structure in the Ecosystem On the 5% Ticket Sales Charge and Cargo Sales Charge, Mr Akpan acknowledged its legal backing under the Civil Aviation Act. However, he questioned its operational design within the ecosystem. “But collection of money for the agencies is not the core business of an airline. It is not stipulated in the manuals nor in their operations specification. An airline cannot be accessed or audited on that item. It is not their responsibility. He argued that airlines should not function as collection agents for government agencies, noting that the process adds financial and administrative burdens. He suggested that agencies should instead deploy direct collection systems or independent financial channels, reducing inefficiencies within the ecosystem. He referenced how the Federal Airports Authority of Nigeria adapted direct collection methods for passenger service charges as a precedent. Final Outlook on the Aviation Ecosystem Mr Akpan also called for digitalisation of processes, improved maintenance infrastructure, expanded operational capacity and reduced cargo bottlenecks. He stressed that the aviation ecosystem cannot remain viable without coordinated reform across all segments, including regulators, operators and service providers. Ultimately, he warned that without structural reform and investment inflows, financial strain will continue to define the ecosystem rather than growth.

The African Development Bank (AfDB) has appointed Nigeria’s Honourable Minister of Aviation and Aerospace Development, Festus Keyamo as the African Champion for its newly launched $7 billion Integrated Aviation Transformation Programme for Africa (IATP). The Minister during the signing of Letter of Intent (LOI) with the Bank at Congo Brazzaville yesterday said the appointment positions Nigeria at the forefront of a continent-wide aviation renaissance aimed at unlocking Africa’s vast air transport potential through strategic investments, policy coordination, and infrastructure modernization. Keyamo described the role as a historic mandate to drive the long-awaited transformation of Africa’s aviation sector and accelerate the continent’s integration into the global air transport economy. He stated that, the AfDB personally designated him to champion the implementation of the IATP, a $7 billion continental platform designed to mobilize private, institutional, and concessional financing for aviation development across Africa. “This is not merely a title; it is a call to action,” Keyamo stated. “It is a responsibility to drive tangible and transformative aviation projects that will redefine connectivity, safety, efficiency, and economic growth across Africa.” Speaking further on the significance of the appointment, Keyamo noted that the AfDB acknowledged his unwavering commitment to aviation reform and the strategic policy direction currently being implemented in Nigeria’s aviation sector. He emphasized that Africa’s aviation industry remains significantly underdeveloped despite the continent accounting for nearly 18 percent of the world’s population while contributing less than 3 percent of global air traffic. “This imbalance is unacceptable and must change,” he said. The statement signed by the Director, Press and Public Affairs Chindaya Ahmadu Audu Adamu stated that as champion of the programme, Keyamo will lead continental advocacy efforts, coordinate policy alignment among member states, and support the deployment of the $7 billion investment package targeted at modernizing airport infrastructure, enhancing aviation safety, improving operational efficiency, and strengthening regional connectivity across Africa. He further stated that Nigeria would serve as both a model and catalyst for the initiative, leveraging its strategic market size, ongoing sectoral reforms, and growing investor confidence to attract the first wave of aviation investments under the programme. “This appointment is a testament to what intentional leadership can achieve,” the Minister said. “I accept this challenge not only on behalf of Nigeria but for every African nation yearning for seamless, safe, efficient, and world-class aviation services. The era of Africa being an afterthought in global aviation is over.”

The Nigerian government has approved the establishment of a privately funded aircraft leasing company aimed at easing local airlines’ access to aircraft and reducing the country’s chronic flight disruptions, aviation minister Festus Keyamo announced. In a statement, he said the Federal Executive Council on April 30 approved the creation of the Nigeria Aircraft Leasing Company, an incorporated special purpose vehicle (SPV) that will be commercially operated and fully privately funded, with no obligation for direct federal investment. The government will instead provide sovereign guarantees to international lessors and manufacturers to lower investor risk and facilitate asset repossession, while holding equity through Ministry of Finance Incorporated (MOFI). First announced in November 2025, the leasing company will act as a central vehicle to acquire or lease aircraft globally for Nigerian operators, allowing domestic airlines to lease aircraft through a single entity backed by government support. Keyamo said the initiative is intended to strengthen local airlines’ ability to serve domestic routes, which have been plagued by delays and cancellations, and improve their competitiveness against foreign carriers that dominate the Nigerian market. USD7 billion initiative Keyamo has also been appointed “champion” of the African Development Bank’s Integrated Aviation Transformation Programme for Africa (IATPA), a USD7 billion continent-wide platform aimed at modernising the continent’s aviation sector and mobilising investment through a proposed Pan-African Aviation Financing Platform. A letter of intent between the bank and Nigeria is due to be signed at the lender’s annual meeting in Brazzaville on May 28, according to a Nigerian government statement. It was not immediately clear if, and by how much, the AfDB would bankroll Nigeria’s new aircraft leasing company. Speaking at a news conference ahead of the Brazzaville conference, Keyama said: “I should announce for the first time that the African Development Bank has keyed into this initiative, because they have an integrated programme for this kind of thing in Africa, and Nigeria is one of their pilot countries.” Since becoming aviation minister in 2023, Keyamo has been credited with pushing reforms aimed at improving Nigerian airlines’ access to aircraft financing, including signing practice directions in September 2024 for the Cape Town Convention to restore lessors’ confidence and so lower leasing costs, addressing blocked airline funds, reviewing airport concession plans, and advocating stricter enforcement of bilateral air service agreements to support local carriers. The AfDB has already begun supporting aircraft financing initiatives, most notably through a January 2026 letter of intent with Air Côte d’Ivoire to explore affordable aircraft acquisition financing for African airlines under the IATP. The arrangement includes work on financing structures for fleet acquisition and renewal, alongside training and sustainability programmes, and has been described as an early milestone of the bank’s continent-wide aviation strategy. The African Export-Import Bank (Afreximbank) planned to launch a pan-African aircraft leasing platform in 2025, but by March 2026 the platform was not yet up and running, according to ch-aviation research. African airlines in general face high leasing costs due to their weaker currencies, fragmented regulation, weak profitability, skills shortages, blocked funds, and limited intra-African connectivity, which continue to hamper the sector despite Africa’s potential presented in its growing population and urbanisation.

There are strong indications that some Nigerian airlines are in danger of going under unless the price of aviation fuel is reduced. Aviation industry experts have observed that despite the increase in base fair to N200,000 by some airlines, the situation remains very dire for them High cost of flight ticket, experts said, cannot help operators who are already steeped deeply in debt. Their cost of operation, he stated, exceed their revenue since March 2026, when the price of crude oil went up due to Iran-US war. The experts were of the view that as long as the airlines buy aviation fuel, known as Jet A1 between N1, 650 and N2, 037 per litter, they would continue to face fiscal uncertainty. They also noted that the high cost of flight ticket would drastically reduce the number of air travellers after the Sallah festivities, regretting that the financial challenge airlines are facing is already affecting other organisations in the aviation industry, including aviation agencies, handling companies and other service providers. Industry analyst and second Vice President of Aviation Round Table, Dr. Alex Nwuba, said the escalating cost of Jet A1 fuel takes nearly half of total airline operating expenses and has forced domestic carriers to raise fares to levels that many Nigerians can no longer afford. “Unlike international carriers, domestic operators have a much smaller fuel footprint, consuming approximately 600,000 litres of Jet A1 per day,” Nwuba said, adding that as long as the cost of aviation fuel is still high, airlines will continue to accumulate debts because the revenue they are generating cannot defray their cost of operation. Recently the federal government pledged to forgive airlines 30 per cent of the debts they owe aviation agencies in a bid to remedy the situation According to the statement, “As an interim response, President Bola Ahmed Tinubu graciously granted us a 30 per cent concession. We are still waiting for the government decision on the other aspects of the AON intervention request. While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr. President to discuss further reliefs, a request that is yet to be granted.” Nwuba said Aviation Round Table, has developed and is putting forward the Fuel‑for‑Stability Programme (FFSP) as a policy recommendation to the federal government. “The federal government’s proposal to forgive 30 per cent of airline debts—estimated at roughly N200 billion—would eliminate N60 billion in receivables owed to Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigeria Civil Aviation Authority (NCAA), Nigeria Meteorological Agency (NIMET) and other aviation service providers. This is not only insufficient but counterproductive. “It weakens the financial position of aviation agencies, encourages future non‑payment, and fails to address the structural cause of airline distress: the cost of fuel.  Without reducing the price of Jet A1, airlines will continue to accumulate new debts even after old ones are forgiven. The write‑off becomes a temporary relief that does not prevent future insolvency,” he said. Nwuba further explained that the Fuel‑for‑Stability Programme (FFSP), as recommended by the Aviation Roundtable, offers a more sustainable and economically rational solution, remarking that the programme is designed exclusively for domestic operators and implemented strictly through local refiners. Commenting, the Managing Director and CEO of Aero Contractors, Captain Ado Sanusi, said that for the aviation industry to survive, government should adopt policies aimed at long term survival of the airlines. He frowned at the many taxes the airlines pay, which he said erodes their chance of operating profitably. He noted that government must ensure that the airlines survive, considering the critical role they play in the economic development of the country. Sanusi reiterated that aviation agencies should not rely on airlines to generate revenues, hence the high taxation and charges levelled at the airlines which impinge on their survivability. To have robust aviation industry, he added, government must not see aviation agencies as revenue generating concerns but organisations that thrive on debt recovery to sustain their services. Sanusi observed that the aviation industry is facing a systemic problem, which must be addressed in order to have a progressive sector. He emphasised that government must enunciate policies that will ensure the sustainability of operating airlines successfully in Nigeria and it is only then that domestic airlines will start growing. “Aviation agencies are not supposed to depend on the money paid to them by the airlines. Even if the Nigerian economy improves in the future, the idea of airlines paying the agencies for their sustenance is not sustainable,” Sanusi further said.