The Nigerian Civil Aviation Authority (NCAA) has confirmed that domestic airlines are already reaping early benefits from the new aircraft leasing policy signed into law by the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo SAN, as part of wider reforms aimed at boosting airline operations and reducing flight disruptions across the country.
The policy, which implements the Irrevocable de-registration and Export Request Authorisation (IDERA), was introduced shortly after Nigeria reaffirmed its commitment to the Cape Town Convention (CTC) in September 2024. The minister officially signed the IDERA instrument in October 2024. Both protocols are designed to streamline the aircraft leasing process, lower leasing costs and increase fleet access for local carriers, critical for improving operational capacity and flight reliability.
Speaking in Uyo at a strategic retreat for the Directorate of Air Transport Regulation (DATR), themed “Achieving Operational Excellence in Air Transport Regulation for Safety and Economic Sustainability,” the director of air transport regulation, Olayinka Babaoye-Iriobe revealed that Nigerian airlines have already started seeing the positive effects of the IDERA implementation.
According to her, the new framework eliminates long-standing legal and operational bottlenecks that previously discouraged foreign lessors from doing business with Nigerian carriers. By enhancing Nigeria’s rating under the CTC index, which had previously languished at below 49 per cent, the new policy has improved the country’s reputation and creditworthiness in global leasing circles.
“What the minister has done is significant. By signing and implementing IDERA, he has restored confidence among international lessors,” Babaoye-Iriobe explained.
“Before IDERA, Nigerian airlines were leasing aircraft at inflated costs because lessors considered Nigeria a high-risk environment. Airlines would sometimes default on lease payments and lessors would face prolonged legal battles just to reclaim their aircraft. That painted Nigeria in a very bad light.”
“Now, with IDERA in place, any lessor can quickly reclaim their aircraft in the event of a default; no court delays, no bureaucracy. The NCAA will simply deregister and release the aircraft by international protocols,” she stated.
She also revealed that the new policy had already been tested with one domestic airline and the process demonstrated a smoother, more transparent engagement between Nigerian regulators and aircraft owners.
“This policy change means our airlines can now access newer aircraft at more competitive leasing terms. That, in turn, addresses the core issue of limited fleet capacity, which has long contributed to frequent flight delays and cancellations,” she noted.
Babaoye-Iriobe also explained that the directorate routinely monitors the financial and operational health of licensed airlines to ensure continued compliance with safety and economic sustainability benchmarks.
“Our job is to evaluate their financial soundness regularly. If an airline is financially distressed, it’s more likely to cut corners, and that has direct safety implications,” she said.
“In collaboration with the directorate of finance, we carry out economic and financial audits of operating airlines. If we identify any weaknesses, we alert the airline and guide them to take corrective action. This early warning approach helps protect passengers and maintain service quality.”
She acknowledged that many Nigerian airlines continue to grapple with capacity issues, primarily due to the difficulty of accessing modern aircraft. The new leasing reforms, she said, are already helping to alleviate this constraint.
“Lack of capacity is a big problem. But with easier access to aircraft, airlines can increase their fleet size, expand routes, and offer more consistent service,” she said.
On the process of obtaining or renewing air operator certificates (AOCs) and air transport licenses (ATLs), Babaoye-Iriobe said the NCAA has prioritised ease of doing business. She noted that, provided applicants meet all requirements, license issuance or renewal can be completed in under a month.
“The ATL is renewable every five years, and we’ve streamlined the process to remove unnecessary delays,” she said.
“What we’ve done in the directorate, as initiated by the director-general, is create an electronic portal that allows operators to submit and track applications online. From uploading documents to making payments, everything can now be done digitally.”
“The only physical visit required is to collect a receipt for proof of payment. Once that’s uploaded, our team reviews the documents and responds promptly. We’ve issued licenses in as little as one month for compliant applicants,” she explained.
Babaoye-Iriobe said the digital portal had significantly reduced human error and enhanced transparency in licensing processes.
She reaffirmed NCAA’s commitment to fostering a more investor-friendly, accountable aviation environment one that supports airline growth without compromising regulatory standards.
She also praised the proactive leadership of Keyamo, noting that his tenure has brought renewed energy and policy direction to the sector.
“Sometimes when you implement policies, the effect isn’t immediate. But we’re already seeing positive signs. The airlines are gaining confidence, lessors are more willing to engage with Nigeria and we’re gradually resolving the issue of limited capacity,” she said.
She concluded by emphasising the core goal of her department: balancing economic sustainability with regulatory oversight to create a thriving, safe, and resilient aviation ecosystem in Nigeria.
The Cape Town Convention (CTC), ratified by Nigeria, is an international treaty that facilitates aircraft financing and leasing by establishing clear legal protections for creditors. The IDERA, a key protocol under CTC, guarantees that aircraft can be swiftly repossessed by lessors in case of contractual defaults, making leasing arrangements more attractive for aircraft owners.
With these reforms now in place, stakeholders across the aviation sector expect that Nigeria will witness a gradual reduction in flight cancellations, a more reliable service network and a broader fleet mix, as airlines are empowered to invest in growth without facing crippling financial or legal roadblocks.
As Nigeria’s aviation industry charts a new course under strengthened regulatory and operational frameworks, observers say the key to long-term success will lie in sustained implementation, consistent oversight and continued collaboration between public and private sector actors.
