Nigerian airlines are beginning to benefit from a fresh leasing policy aimed at easing aircraft shortages.
The new system is improving access to planes and could lower airfares soon.
The Nigerian Civil Aviation Authority (NCAA) has revealed that local airlines are already reaping the benefits of the newly implemented aircraft leasing framework introduced by the federal government.
Speaking at a retreat for the Directorate of Air Transport Regulation (DATR) in Uyo, the Director of the department, Mrs. Olayinka Babaoye-Iriobe, said the policy is already showing positive impact. According to her, the leasing reforms are aimed at easing long-standing challenges in the sector, especially the shortage of aircraft, which often leads to frequent flight cancellations.
She explained that prior to the policy shift, Nigeria had a poor standing under the Cape Town Convention (CTC), scoring below 49 percent on the global index. This made it difficult for Nigerian airlines to access competitive leasing offers, forcing them to rent aircraft at significantly higher rates.
However, following the Minister of Aviation and Aerospace Development, Festus Keyamo’s intervention, Nigeria has now adopted the Irrevocable De-registration and Export Request Authorization (IDERA), which has boosted the country’s standing under the CTC.
“What the Honorable Minister has done is to sign and begin the implementation of IDERA, which immediately improved our rating,” Babaoye-Iriobe said. “When we were at 49, it was difficult for airlines to access leasing companies. Now, the improved score gives them better deals, which in turn can reduce airfare for passengers.”
She noted that the IDERA implementation has already been tested with at least one airline, adding that the policy protects the interests of aircraft lessors. Previously, airlines that failed to keep up with lease payments would seek court injunctions to block repossession, damaging Nigeria’s reputation among global leasing companies.
“With IDERA, once a lessee defaults, the lessor can recover the aircraft without delay or legal hurdles. NCAA will release the plane immediately. This has restored confidence among aircraft leasing firms,” she stated.
The DATR boss emphasized that the full effect of the policy may not be immediate, but it lays the foundation for long-term improvements in airline operations and flight availability.
Babaoye-Iriobe further stated that the Directorate routinely conducts economic and financial audits of airlines in collaboration with the Directorate of Finance. These reviews ensure that carriers remain financially sound and are not forced to cut corners, which could affect passenger safety.
“Airline licenses and renewals are now more accessible,” she said. “As long as operators meet all requirements, the renewal process can be completed in under a month.”
She added that to make the process even smoother, the NCAA has introduced an electronic portal that allows airline operators to apply for authorizations and pay fees online. The only part of the process that currently requires physical presence is obtaining an NCAA-issued receipt, which can then be uploaded to the portal for verification.
“We have issued licenses within a month for applicants who met every requirement. We take compliance seriously, but we also prioritize efficiency,” she explained.
The new aircraft leasing policy, officially launched in October 2024, builds on the minister’s earlier signing of the Cape Town Convention in September 2024. The goal of both reforms is to cut the cost of leasing aircraft, grow the available fleet, and reduce the frequency of flight delays and cancellations.
According to Babaoye-Iriobe, the initiative is already positioning Nigeria as a more attractive market for aircraft leasing firms and is expected to improve overall flight operations and air travel reliability in the country.
“With increased access to aircraft, airlines will be able to meet growing demand. Lack of capacity has been a major issue, and this policy is a critical step toward resolving it,” she concluded.
