FG Rules Out National Carrier, Unveils New Support Measures for Nigerian Airlines

The Federal Government has reaffirmed its commitment to strengthening indigenous airlines, ruling out plans to establish a national carrier and instead focusing on policies designed to expand the capacity of private operators. Minister of Aviation and Aerospace Development, Festus Keyamo, made the position known during the unveiling of two newly acquired Boeing 737-800 aircraft by United Nigeria Airlines. According to the minister, the Tinubu administration has prioritised creating an enabling environment for local carriers to thrive, arguing that government-owned national airlines have struggled to remain sustainable in many parts of the world. He noted that the government's aviation strategy is centred on supporting privately owned Nigerian airlines through favourable policies, route expansion opportunities, and improved access to aircraft financing. Keyamo said domestic operators are being encouraged to capture a larger share of Nigeria's aviation market, which serves millions of passengers annually but remains largely dominated by foreign airlines. As part of efforts to boost local carriers, the minister disclosed that authorities have approved international route allocations for United Nigeria Airlines, including destinations in North America and the Middle East, subject to the availability of suitable aircraft and operational requirements. He also revealed that President Bola Tinubu had approved the establishment of a Nigerian Aircraft Leasing Company, a state-backed initiative aimed at addressing long-standing challenges faced by domestic airlines in acquiring aircraft. According to Keyamo, the proposed leasing company will facilitate aircraft procurement through government-backed arrangements before subleasing the aircraft to Nigerian operators, making fleet expansion more accessible and affordable.

The minister stated that recent reforms in the aviation sector have helped restore confidence among financial institutions, encouraging banks to provide funding and credit facilities to airlines seeking to expand their operations. Beyond airline development, Keyamo highlighted ongoing efforts to improve aviation infrastructure across the country. He disclosed that the federal government had included the development of an aviation facility in Abia State among its priority projects after identifying the state as the only one in the South-East without an airport. The minister commended Abia State Governor, Alex Otti, for providing counterpart funding that has helped transform the project from a proposed airstrip into a full-scale airport development. He added that the long-term vision is to position the facility as a strategic aviation hub capable of supporting economic activities in Aba, Umuahia, and surrounding commercial centres. Keyamo also referenced developments at the Akanu Ibiam International Airport in Enugu, noting that the federal government had supported efforts to attract private-sector participation aimed at unlocking the airport's economic potential. According to him, plans are underway to transform the airport into a major cargo hub serving the South-East region, with discussions ongoing to establish direct cargo links between China and Enugu. The minister expressed optimism that improved connectivity and infrastructure would strengthen trade opportunities for businesses across the region while enhancing the competitiveness of Nigeria's aviation industry. He maintained that the government's focus remains on empowering indigenous airlines, expanding infrastructure, and creating sustainable growth within the sector rather than investing in a state-owned national carrier.

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