The Minister of Aviation and Aerospace Development, Festus Keyamo, has defended the Federal Government’s decision to halt the proposed Nigeria Air project, stating that the model would have effectively ceded control of the country’s aviation sector to foreign interests at the expense of local operators.
He made this known while speaking in an exclusive interview on Frontline, a public affairs programme on Eagle 102.5 FM, Ilese-Ijebu, Ogun State, on Tuesday, where he outlined the administration’s broader strategy for building a sustainable and competitive aviation ecosystem.
The minister explained that the Nigeria Air initiative, as previously structured, would have mirrored arrangements seen in other African countries where foreign airlines dominate national carriers, warning that such a model would undermine indigenous airlines and weaken Nigeria’s long-term aviation independence.
“We cannot hand over our entire aviation system to another African country and then kill all our local operators. The better way to go will be to come and fight for those local operators, raise their capacities and their standard to compete with the rest of the world,” he said.
He stressed that rather than creating a national carrier controlled externally, the government is focused on strengthening local operators and enabling them to compete globally through improved access to financing, leasing arrangements, and operational support.
Concerns Over Foreign Control
Keyamo raised concerns that the Nigeria Air model would have replicated systems in countries like Togo, where foreign airlines play dominant roles.
“You know, if Ethiopian Air pulls out of Togo tomorrow, the Togo aviation ecosystem will collapse because they own it 100%. They own ASCAI. That ASCAI you are seeing is Ethiopian Air. They just repainted this ASCAI. That’s the same thing we’re trying to do in Nigeria. That’s the same thing we’re trying to do here. It was Ethiopian Air just to paint it in Nigerian colors. But owned by… and we said, no, no. We cannot hand over our entire aviation system to another African country and then kill all our local operators,” he explained.
He noted that in such arrangements, the so-called national carrier is often controlled by an external airline, with local branding masking foreign ownership and operational control. According to him, this model risks placing the entire aviation ecosystem of a country in the hands of another nation, which could have long-term economic and strategic implications. He emphasized that Nigeria, given its size and market potential, cannot afford to adopt a model that diminishes its control over a critical sector like aviation.
Focus Shifts to Local Airlines
Instead of pursuing a foreign-backed national carrier, the government is prioritizing the growth of domestic airlines. Keyamo explained that the administration’s strategy is to empower Nigerian carriers by addressing the structural challenges that have historically limited their growth, particularly lack of access to aircraft financing and leasing opportunities.
“The problem is very simple. The problem is that Nigerian aircraft airlines, our local operators, they don’t have access to the same type of credit lines, the same types of lease agreements and lease arrangements that other major airlines of the world have access to,” he said.
He emphasized that restoring this confidence is central to the government’s aviation reform agenda.
Global Engagements Yielding Results
Keyamo highlighted ongoing engagements with major aircraft manufacturers such as Airbus and Boeing as part of efforts to unlock financing opportunities.
“What we did is that we said, okay, let us go to the root of the matter. Let us go around the world, which is one of those visits, of course. We visited going to visit Airbus. Let’s go around the world and ask some of these powerhouses of aviation, how can we have access? How can our aviation ecosystem have access to the best financing, you know, arrangements in the air ecosystem around the world?” he added.
According to him, the discussions have begun to yield positive results, with increasing interest from international stakeholders in Nigeria’s aviation market. He noted that confidence is gradually returning, as reforms implemented by the government begin to address longstanding concerns within the global aviation community.
Nigeria Closing Aircraft Deficit
The minister revealed that Nigeria is currently facing a significant aircraft deficit, which the government is working to address.
“A report by Boeing says that we are lagging behind in the region of 200 aircrafts. It’s as much as that. Nigeria is lagging behind with about 200 aircrafts. So what is the problem? The problem is very simple. The problem is that Nigerian aircraft airlines, our local operators, they don’t have access to the same type of credit lines, the same types of lease agreements and lease arrangements that other major airlines of the world have access to,” he clarified.
He cited industry reports indicating that the country is short of approximately 200 aircraft, a gap that has contributed to flight delays, cancellations, and limited route expansion. He explained that increasing the number of aircraft available to local operators will not only improve service delivery but also introduce competition, which could lead to more affordable airfares for passengers.
Cape Town Convention Boosts Confidence
Keyamo pointed to Nigeria’s improved compliance with international aviation agreements as a major factor in restoring investor confidence.
“We have done that now. And that is why in passing the practice direct on the Cape Town Convention, our scores went up from 49.5% to 75.5%, which is the highest score in Africa. The highest compliance score in Africa is now Nigeria,” he said.
He explained that adherence to the Cape Town Convention has significantly improved Nigeria’s credibility in the global aviation financing market, raising its compliance rating and making it more attractive to investors.
“It has happened now. They are beginning to look our way. The whole of Dublin is looking at Nigeria now. They have invited us a couple of times. We are holding an aircraft acquisition conference at the Federal Palace Hotel in the next two weeks. It’s going to be a massive conference in Nigeria and the whole world. Most of the airlines, the credits, leases, and finances around the world, they are coming for that conference. We are making huge progress,” he added.
Trapped Funds Issue Resolved
The minister also addressed concerns about previously trapped airline funds, distinguishing them from aircraft financing challenges.
“Trapped funds do not relate to the manufacturers. Trapped funds relate to the airlines. The international airlines that were operating into Nigeria and out of Nigeria… once they buy with Naira and the monies are in the CBN or commercial banks, they have to look for the equivalent of the dollars to send back to the home countries of those airlines. But Nigeria had no liquidity,” he explained.
“Guess what? Within the first six months, a debt of nearly $1 billion, trapped funds… which is about nearly 1 billion, this government cleared all of that within the first six months,” he added.
“Trapped funds… it was a huge plus for Nigeria. Our rating with IATA shot up. Just Google the IATA website and look at all the comments IATA made about Nigeria and this present government. It’s incredible. We have never seen anything like this,” he said.
Government Rejects Subsidized National Carrier
Keyamo argued that establishing a government-owned national carrier is not economically viable.
“All over the world. All over the world, no airline can survive commercially on the bureaucratic setup. Governments are removing their hands from airlines all over the world. British Airways is not owned by the British government again. I hope you know that,” he said.
“We cannot afford that in Nigeria. We cannot. We can’t say we are removing subsidy and then packing all those money again and subsidizing a national airline where half of the airline would be… you know what happened to Nigerian Airways? Half of the airline every day would be by government officials, their wives and their family and all that,” he added.
“All you must do is to ensure that you make the right policies for private people to come and invest in a national airline or make sure private operators within the system thrive,” he clarified.
According to him, government-run airlines often struggle with inefficiency and political interference, making them unsustainable in the long run. He emphasized that Nigeria cannot afford to remove fuel subsidies only to redirect resources into sustaining a loss-making national carrier.
Alternative Model for National Carrier
The minister outlined alternative approaches for establishing a national airline without direct government ownership.
“All you must do is to ensure that you make the right policies for private people to come and invest in a national airline or make sure private operators within the system try. These are the two options available,” he said.
“Just like British Airways. Bring private investors to come home and use the name Nigerian Airways. That’s your franchise. Air Nigeria, Nigeria Airways, it’s your franchise as a country. You can sell that franchise. Sell the franchise out for people to come and invest in that franchise or make sure your local operators, your flight carriers, they thrive,” he added.
He highlighted that these approaches are more sustainable and aligned with global best practices.
Roadmap to Aviation Hub Status
Keyamo reiterated the government’s ambition to position Nigeria as a major aviation hub in Africa.
“The first roadmap is to rebuild infrastructure. You cannot even make a place a hub when you don’t have the means to process passengers from one terminal to the other, either arrival, and then of course, process them to departure, to fly out from that terminal. And that’s what you see all over the world,” he said.
“The second roadmap is to then ensure that the local airlines can then compete with international airlines that come into Nigeria… As it is today, we cannot compete. One, we have under our bilateral service agreement, we have reciprocal rights to service all of these routes that are coming to Nigeria… It’s not that we gave them the right to come to Nigeria without it. We have the reciprocity to run those routes, but they are the only ones taking advantage,” he added.
“Once we get all of the infrastructure and access to equipment right, the roadmap is sorted out and then we can make here a hub, you know,” he said.
According to him, ongoing airport redevelopment projects and efforts to expand airline capacity are critical components of this strategy. He noted that with the right policies and investments, Nigeria has the potential to rival established hubs such as Addis Ababa.
