The Nigerian aviation sector is poised for a significant boost, with the African Export-Import Bank (Afreximbank) pledging crucial support for aircraft financing. This commitment, announced during a productive side meeting at the ongoing Aviation Economic Conference in Dublin, Ireland, will provide Nigerian airlines with much-needed access to aircraft, enabling them to expand operations and enhance connectivity both domestically and internationally.
A key aspect of this support will be the launch of an Afreximbank leasing subsidiary. This initiative will soon see the delivery of 25 aircraft for lease to African airlines, including those operating within Nigeria. This access to dry-leased aircraft is expected to be a game-changer, particularly for Nigerian airlines seeking to effectively service routes covered by Bilateral Air Service Agreements (BASAs) and strengthen their domestic networks.
“At the meeting, Afreximbank, led by its Director and Global Head of Project and Asset-Based Finance, Helen Brume, agreed in principle to collaborate with Nigeria on aircraft financing,” stated Tunde Moshood, Special Adviser on Media and Communications to the Minister of Aviation and Aerospace Development.
Brume, highlighting Afreximbank’s successful track record of supporting airlines such as Arik Air, Kenya Airways, and TAG, emphasized the critical role of robust aviation infrastructure in enhancing the competitiveness of African airlines.
The meeting brought together key stakeholders, including Helen Brume from Afreximbank and Lereece Rose, Boeing’s Senior Director of Finance.
Keyamo underscored the importance of strong partnerships to address the challenges faced by Nigerian operators in securing aircraft financing. He emphasized the government’s dedication to creating a more conducive environment for aviation investment by streamlining policies and improving airport concession agreements.
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Lereece Rose commended Nigeria for its significant progress in improving its Cape Town Convention score, a crucial step towards creating a more favorable environment for aircraft financing and leasing. This increase from 49.5 percent to 75.5 percent demonstrates the government’s commitment to implementing international best practices in this area.
This collaboration between the Nigerian government and Afreximbank marks a significant turning point for the nation’s aviation sector. By providing access to much-needed aircraft financing, this partnership promises to increase capacity, enhance passenger experience, and solidify Nigeria’s position in the global aviation landscape.
A follow-up committee has been established to ensure the swift and effective implementation of this crucial partnership, translating the commitment into tangible solutions that will benefit Nigerian airlines and passengers alike.
