The Nigerian Civil Aviation Authority (NCAA) has revealed that domestic airlines are already experiencing positive outcomes from the implementation of a new aircraft leasing framework introduced by the federal government.
Speaking at a retreat for the Directorate of Air Transport Regulation (DATR) held in Uyo, Mrs. Olayinka Babaoye-Iriobe, Director of Air Transport Regulation at the NCAA, said the policy is beginning to address a key challenge in the aviation sector shortage of operational aircraft, which often leads to frequent flight delays and cancellations.
She noted that the reform stems from Nigeria’s full implementation of the Cape Town Convention (CTC) and the Irrevocable De-registration and Export Request Authorization (IDERA), both of which enhance the country’s attractiveness to international leasing firms.
“Before this reform, Nigeria’s compliance with the CTC was below 49 percent, making it difficult for local airlines to secure aircraft leases at competitive rates,” Babaoye-Iriobe explained. “Now, with the signing and implementation of IDERA, our CTC rating has improved significantly, which has restored confidence among lessors.”
The policy change, initiated under the direction of Aviation and Aerospace Development Minister Barr. Festus Keyamo in late 2024, has improved regulatory conditions for foreign leasing companies. Previously, disputes over lease defaults often ended up in prolonged court battles, damaging Nigeria’s reputation within the global leasing community.
“With IDERA, if there’s a default, the lessor can retrieve the aircraft immediately without court interference, and NCAA will ensure compliance,” she stated. “This has made Nigeria a more credible environment for leasing agreements.”
According to her, the policy is already being implemented with at least one domestic airline, and more operators are expected to benefit in the months ahead.
She added that the capacity constraints many local airlines currently face are largely tied to limited access to aircraft, a problem the new framework aims to solve by facilitating easier and more affordable leasing options.
As part of ongoing reforms, Babaoye-Iriobe also highlighted improvements in licensing processes. She said the directorate has simplified procedures for acquiring and renewing Air Transport Licenses and Air Operator Certificates, streamlining operations through an online portal.
“With the new electronic platform, operators can submit applications, upload documents, and make payments online,” she said. “Licenses can now be processed in less than a month, provided all regulatory conditions are met.”
On financial oversight, the NCAA official disclosed that regular economic and financial audits are carried out in collaboration with the Directorate of Finance to ensure airlines remain viable and operationally sound.
“If an airline is financially unstable, it increases safety risks,” she said. “We monitor them closely and help identify and fix weaknesses to maintain safety standards.”
The reforms, spearheaded by the Ministry of Aviation, aim to boost fleet capacity, stabilize airline operations, and reduce passenger disruptions due to flight cancellations in the medium to long term.
