Nigeria’s aviation sector is set to mark a major milestone with the arrival of the first batch of dry-lease aircraft on October 6, 2025, nearly a year after the country successfully exited the Aviation Working Group (AWG) watchlist. The development, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, represents a turning point for Nigerian airlines that have long faced barriers in accessing affordable and flexible aircraft leasing arrangements due to the country’s previous compliance challenges.
Keyamo disclosed this during the foundation-laying ceremony of the Air Peace Maintenance, Repair, and Overhaul (MRO) facility at Murtala Mohammed International Airport, Lagos. In a statement released by his spokesperson, Tunde Moshood, the minister reaffirmed that the government’s support for dry-lease arrangements is part of a wider strategy to strengthen the industry, reduce capital flight, and enhance the global competitiveness of local airlines.
“The Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, today laid the foundation for the Air Peace Maintenance, Repair, and Overhaul (MRO) facility at the Murtala Mohammed International Airport, Lagos,” the statement noted. It further added, “The Minister also disclosed that the first set of dry-lease aircraft under new government-backed arrangements will arrive in Nigeria by October 6, 2025, a step that will further reduce capital flight and strengthen the industry.”
Why Dry-Lease Matters
Unlike wet-lease agreements, where the aircraft, crew, and insurance are bundled, dry-leasing enables airlines to lease only the aircraft and operate them with their own personnel. This model allows carriers to exercise greater control over scheduling, flight operations, and long-term planning. For Nigerian airlines, the introduction of dry-leased aircraft is expected to reduce dependence on foreign operators, lower operational costs, and improve profitability.
For years, Nigerian carriers were hampered by their inability to access dry-lease options, mainly due to the AWG’s decision to place the country on its watchlist for non-compliance with the Cape Town Convention. Carriers’ defaults on leasing agreements, particularly instances where Nigerian airlines obtained court injunctions to block aircraft repossession, damaged Nigeria’s reputation within the global aviation community. However, with improved compliance, Nigeria’s rating under the Cape Town Convention has risen significantly from 49% to 75.5%, restoring credibility and paving the way for dry-lease financing.
Air Peace MRO Facility: A Game Changer
The timing of the dry-lease announcement coincides with the commencement of the Air Peace MRO project, a N32 billion investment scheduled for completion within 15 months. The state-of-the-art facility will span 32,000 sqm and include:
- A 6,150 sqm hangar capable of accommodating wide-body aircraft such as the Boeing 777-ER.
- 2,800 sqm of dedicated storage space and 1,500 sqm of workshops.
- A four-storey administrative building designed to support technical and managerial operations.
- A 5,000 sqm apron for efficient aircraft handling and logistics.
The MRO will not only serve Nigerian carriers but also attract regional airlines, reducing dependence on overseas facilities in Europe and the Middle East. The project is supported by key partners including the Bank of Industry, Fidelity Bank, Zenith Bank, and technical collaboration from Embraer.
Industry-wide Benefits
The arrival of dry-lease aircraft and the establishment of domestic MRO services are expected to deliver transformative benefits for Nigeria’s aviation industry. Airlines will be able to expand their fleets under more favorable terms, reduce foreign exchange losses tied to wet-leasing, and create jobs across maintenance, technical services, and operations.
Further reinforcing this shift, the African Export-Import Bank (Afreximbank) announced in January 2025 that it would support Nigerian airlines with access to 25 aircraft through its leasing subsidiary, structured under dry-lease arrangements. This initiative aligns with broader efforts to build a self-reliant and financially sustainable aviation sector in Africa.
Looking Ahead
Nigeria’s re-entry into the global leasing market signals renewed investor confidence in the country’s aviation ecosystem. With more than a dozen airlines currently operating in the domestic market and rising demand for regional and international flights, the ability to access dry-leased aircraft could significantly reshape competition and service delivery standards.
As Keyamo emphasised, these reforms are not just about aircraft acquisition but about restoring confidence, creating a modern aviation infrastructure, and positioning Nigeria as a regional hub. If implemented effectively, the combination of dry-leasing, improved regulatory compliance, and new MRO capacity could usher in a new era of growth, making Nigeria a more formidable player in global aviation.
