•Fidelity Bank, AFG seal aircraft acquisition deal •Local operators no longer demonised -Onyema
By Chinelo Obogo
talktonelo@yahoo.com
Nigeria’s aviation industry is entering a new phase as airlines, aircraft lessors and financial institutions converged in Lagos to reshape the sector’s future through deeper collaboration and investment.
The platform was the maiden edition of the Nigerian Aircraft Acquisition and Investment Summit and the thrust of conversations was a renewed push to unlock financing for fleet expansion, improve access to aircraft and strengthen the operating environment for local carriers.
From pledges of legislative backing to past bitter experiences, speakers at the summit spoke of a sector that is determined to rise from its past and position Nigeria as the aviation hub of West and Central Africa.
The summit, which drew domestic airline operators, financiers, leasing companies, policy makers and airport managers, was convened due to the government’s plans to prioritise indigenous airlines and attract funding into the country’s aviation ecosystem.
We’re no longer demonised -Onyema, Air Peace CEO
Speaking with deep emotion, Air Peace Chairman, Allen Onyema, recalled years of government neglect, saying it had weakened and undermined domestic operators.
He disclosed that it took nine years for him to secure land for a Maintenance, Repair and Overhaul (MRO) facility, a process he said was only concluded through the intervention of the Aviation Minister, Festus Keyamo.
He added that, over the years, government policies tended to favour international carriers at the expense of Nigerian airlines.
Onyema expressed gratitude for what he described as a departure from that approach under President Bola Tinubu.
He recalled two instances of financial losses that Air Peace had suffered at the hands of foreign partners.
He disclosed how Syphax Airlines of Tunisia defrauded the carrier of $3 million after claiming an aircraft needed a routine check, only to fly it back to base and never return. Onyema said he had personally authorised the release of the aircraft despite knowing the financial risk, fearing that refusing would allow a false narrative that a Nigerian airline had illegally held a foreign aircraft to spread unchallenged.
He also disclosed that SmartLink Airlines caused losses of approximately $38 million to the industry, with Air Peace alone absorbing around $8 million of that figure after the airline collected funds upfront and left Nigeria without notice.
Despite these experiences, Onyema said that the stigmatisation of Nigerian operators was unjust and damaging to the country’s image. “Nigerians are very, very good people. Once you are mentioned to be a Nigerian, you are already a criminal. You are already as guilty as speculated. It is not so,” he said.
In his role as Vice President of the Airline Operators of Nigeria, he said the body would hold its members accountable and ensure that no Nigerian airline defaults on its financial obligations to foreign partners.
Nigeria’s aviation most buoyant in West Africa -Kuku, FAAN MD
At the event, the Managing Director of the Federal Airports Authority of Nigeria,
Olubunmi Kuku, who was absent but sent her remarks, made a case for why Nigeria’s aviation sector remains one of the most buoyant on the African continent and why the timing of the summit was significant.
She said that despite COVID-19, air travel to and from Nigeria has shown resilience, with passenger load factors recovering and new routes opening.
Kuku said that FAAN is seeking partnerships with local and international banks, leasing companies, export credit agencies and development finance institutions. “Our doors are open to structure innovative solutions that align infrastructure development with fleet expansion by operators. Nigeria, by virtue of its size, economy and geographic location, is a natural hub for West and Central Africa,” she said.
AFG, Fidelity Bank to de-risk aviation financing
A major highlight came when Amuchie Stanley, representing Fidelity Bank, announced a new partnership with German firm AFG, aimed at combining technical aviation expertise with strong financing capacity to support fleet acquisition and leasing for Nigerian airlines.
“AFG is very big in financing aircraft, sourcing aircraft, and leasing aircraft. We decided to enter into a partnership. The arrangement is for us to find finance, bring finance and expertise together to make sure that we finance aviation. It is like technical know-how meeting financing to make sure that you de-risk your involvement in the aviation sector and make sure it’s done very well,” he said.
He confirmed that the arrangement was flexible and will accommodate both outright aircraft purchase financing and leasing structures through a Special Purpose Vehicle. “If you have part of your money and you want outright purchase, why not? But if it’s to lease, the SPV can buy the assets and lease, so you pay lease rentals,” he explained.
NCAA DG foresees fleet expansion, lower airfares
The Director General of the Nigerian Civil Aviation Authority, Capt. Chris Najomo, at the event, predicted an expansion in Nigeria’s fleet size and the entry of new operators within the next six months.
He hailed the recently announced partnership between Fidelity Bank and Air Peace as a landmark moment, noting that other major banks including Zenith had since signalled similar intentions. “You will see that more aircraft will come in. Better aircraft, modern aircraft will come in,” he said.
The NCAA chief disclosed that he had already issued between seven and eight Air Operator Certificates since assuming office, cutting the processing time from the previous two to three years down to between six and nine months.
He predicted that airfare prices in Nigeria would fall as capacity increases. “Prices of tickets will come down. You can see they are coming down because we are beginning to have capacity. We had no capacity before. So where we have airlines who are having two, three aircraft now, we are having airlines” with significantly larger fleets,” he said.
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