Nigeria to Receive First Dry-Lease Aircraft in 20 Years

Nigeria’s aviation sector is set for a historic leap as the Minister of Aviation and Aerospace Development, Festus Keyamo, announced that the country will receive its first dry-lease aircraft in nearly two decades on October 6, 2025. The announcement coincided with the groundbreaking of a N32bn Maintenance, Repair, and Overhaul facility by Air Peace at the Murtala Muhammed International Airport, Lagos.

A dry lease refers to an arrangement where only the aircraft is provided by the lessor, while the lessee handles crew, insurance, and maintenance. This differs from the more common wet leases, which include crew and full support.

The development signals a turning point for Nigerian airlines, which will now enjoy greater control and lower operating costs.

“For the past two decades, all the aircraft you’ve been seeing are wet leases. The first set of dry leases for the past 20 years will be coming in by October 6th and will be delivered by Air Peace,” Keyamo disclosed during the Air Peace MRO foundation-laying ceremony.

He described the arrival as proof that international lessors now consider Nigeria safe for investment. “This has not happened in almost two decades. It marks a new dawn for our industry,” he added.

Keyamo revealed that his personal involvement in securing the lease deal helped rebuild confidence among global partners. He noted that strict enforcement of the Cape Town Convention, alongside direct guarantees, convinced lessors to release the aircraft at more competitive rates.

“In this particular deal, I wrote a letter on behalf of the airline. I gave a guarantee that they will not default, and even if they do, I will ensure the aircraft is returned. That assurance made the difference,” he said. He further explained that the dry lease will arrive at a cost three times cheaper than what Nigerian operators previously paid for wet leases, thereby easing the financial pressure on airlines.

At the same event, Nigeria’s largest airline, Air Peace, commenced work on its ambitious N32bn MRO project. The facility, expected to create about 50,000 jobs, will sit on a 34,000-square-meter parcel of land within the Lagos airport.

Air Peace Chairman and Chief Executive Officer, Allen Onyema, underscored the significance of the project, noting that Nigerian airlines have long suffered high operating costs due to the absence of local MRO facilities.

“In 2024 alone, our airline spent over N180bn on aircraft maintenance abroad. This includes spare parts, logistics, and services. With this facility, Nigerian carriers will no longer need to fly overseas for major repairs. We will save foreign exchange, cut costs, and even attract international airlines to Nigeria for maintenance,” Onyema explained.

He credited President Bola Tinubu and Minister Keyamo for backing the initiative, saying it marked the first time airlines had received genuine, structural support from government.

The MRO facility is expected to reduce the burden of dollar-denominated expenses on airlines, thereby lowering operational costs and ultimately reducing airfares. Onyema disclosed that the project has attracted the support of Brazilian aircraft manufacturer Embraer, which will provide technical expertise.

“This facility will be a game changer, not only for Air Peace but for the entire continent. It will position Nigeria as a hub for aviation maintenance in West Africa,” he said.

Keyamo, in his address, described the project as a “national treasure,” stressing the government’s resolve to prioritize local airlines in policy implementation. “While some criticize me for supporting domestic airlines, I wear that as a badge of honour. This project belongs to Nigeria, and we must protect it collectively,” he said.

The Executive Director for Large Enterprises at the Bank of Industry, Ifeoma Uz’Okpala, lauded the project as perfectly aligned with the bank’s mandate. “We are thrilled to support Air Peace in delivering a project that will lower costs, enhance efficiency, and impact millions of Nigerians,” she said.

Uz’Okpala added that local access to world-class aircraft servicing would make Nigerian airlines more competitive and profitable. Industry experts agree that the MRO will cut capital flight, strengthen the naira, and create a ripple effect across aviation-linked industries, from logistics and engineering to training and hospitality.

Traditional reliance on foreign MROs has long strained Nigerian airlines, forcing them to spend billions abroad while struggling with high ticket prices at home. The arrival of the dry-lease aircraft and the construction of Air Peace’s MRO facility are seen as complementary milestones that will redefine the sector.

Keyamo concluded that these twin achievements—new dry leases and a local MRO—represent the dawn of a new era. “We are witnessing the rebirth of Nigeria’s aviation industry. The future is bright, and our airlines will now compete on equal footing with global players,” he said.

As Air Peace sets the pace, stakeholders are optimistic that other airlines will follow suit, turning Nigeria into a regional aviation powerhouse.