The Nigerian aviation sector crossed a historic financial and operational threshold on Friday, November 7, 2025, with the official reception of Air Peace’s first dry-leased Boeing 737-700NG aircraft, registered as EI-HRN.
The aircraft, sourced from global lessor AerCap, signals a major return of international financiers’ confidence in the country, a trust eroded by years of payment defaults and an insufficient legal framework for asset protection.
The event, held at the Murtala Muhammed Airport in Lagos, was attended by Minister of Aviation and Aerospace Development, Festus Keyamo, who underscored the financial significance of the achievement and unveiled the Federal Government’s plan to further empower local carriers.
The Minister announced a government initiative to establish a Federal Government-backed aircraft leasing company in Nigeria. This new entity is intended to act as a crucial intermediary, bridging the gap between local operators and international lessors and manufacturers.
This planned company, Keyamo suggested, would simplify access to aircraft, ensure better financing terms, and bolster the competitiveness of domestic airlines against foreign dominance. He emphasized that the shift from the costly wet-lease model—which he estimated to be three times more expensive—to dry-leasing will drastically reduce airlines’ operational expenditures and, consequently, ticket prices for consumers.
Keyamo personally guaranteed the Air Peace dry-lease agreement, asserting that the government’s commitment to the Cape Town Convention and the recently enacted Irrevocable Deregistration and Export Request Authorisation (IDERA) Advisory Circular has laid the foundation for global trust.
Air Peace Chairman, Dr. Allen Onyema, hailed the dry-lease as a “bold leap” for Nigerian aviation, stating the agreement was made possible by the Federal Government’s guarantee and Air Peace’s prudent financial balance sheet, which showed no recklessness or global debt.
Onyema stressed that the cost-efficient dry-lease option is essential for the airline’s future, given its need for over 50 aircraft to effectively serve Nigeria’s massive population and its extensive regional and international routes.
He assured the lessors that the airline understands it is now shouldering the collective reputation of the Nigerian aviation industry and will strictly adhere to maintenance and operational standards, which will also be supported by the airline’s new Maintenance, Repair, and Overhaul (MRO) facility.
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While the arrival of the AerCap-leased aircraft is a monumental indicator of restored confidence in asset leasing to a major Nigerian airline, some industry analysts offer a counterpoint to the official narrative of it being the “first dry-lease in two decades.”
Data shows smaller, niche Nigerian carriers have utilized dry-lease agreements in the past few years. However, this fact should not diminish the actual landmark achievement: the re-engagement of a global giant like AerCap with a large, flag-carrying airline like Air Peace in a dry-lease arrangement is a far more powerful signal to the international financial community.
It validates the government’s policy reforms and Air Peace’s operational integrity on a scale that redefines the Nigerian market. The development is expected to spur capital inflow and accelerate the modernization of fleet capacity, positioning Nigeria as a more competitive player in African air transport finance and operations.
