FG Won’t Surrender Aviation Sector to Foreign Interests, Says Keyamo

James Sowole in Abeokuta

The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has defended the federal government’s decision to halt the proposed Nigeria Air project, declaring that Nigeria will not cede control of its aviation sector to foreign interests.

The minister declared the position of the government while speaking on Frontline, a public affairs programme of a private radio station, Eagle 102.5 FM located in Ilese Ijebu, Ogun State.

In the broadcast monitored by THISDAY, the minister said the earlier Nigeria Air model would have undermined indigenous airlines and weakened the country’s long-term aviation independence.

He said, “We cannot hand over our entire aviation system to another African country and then kill all our local operators.

 “The better approach is to support and strengthen local airlines to compete globally.”

Keyamo warned that the Nigeria Air arrangement mirrored models in some African countries where foreign airlines dominate national carriers, often controlling operations behind local branding.

Citing examples, he said such systems risk total dependency on foreign operators, noting that if dominant foreign partners withdraw, entire national aviation structures could collapse.

According to him, Nigeria’s size and market potential make it too strategic to adopt such a model.

Rather than establishing a foreign-backed national carrier, the government is prioritising the growth of domestic operators.

Keyamo identified limited access to credit facilities and aircraft leasing as major constraints facing Nigerian airlines.

“The problem is simple—our local operators do not have access to the same financing and leasing arrangements available to major global airlines,” he said.

He added that reforms are underway to improve access to funding and restore international confidence in Nigeria’s aviation sector.

The minister disclosed that government has engaged major global manufacturers such as Airbus and Boeing to unlock better financing opportunities for Nigerian airlines.

He noted these engagements are already yielding positive results, with growing international interest in Nigeria’s aviation market.

Keyamo disclosed that Nigeria is currently facing a deficit of about 200 aircraft, limiting route expansion and contributing to flight delays and cancellations.

He said bridging this gap would improve service delivery, boost competition, and potentially reduce airfares.

The minister highlighted improved compliance with the Cape Town Convention as a major milestone.

Nigeria’s compliance score, he said, has risen significantly, making the country more attractive to global aviation financiers.

“This has restored confidence. Investors are beginning to look our way again,” he stated.

Keyamo also disclosed that nearly $1 billion in trapped funds owed to international airlines has been cleared, boosting Nigeria’s credibility with global aviation bodies such as International Air Transport Association.

He explained the issue stemmed from foreign airlines’ inability to repatriate earnings due to foreign exchange constraints, a problem now resolved by the current administration.

The minister maintained that government-owned airlines are no longer viable globally, citing inefficiency and political interference.

He referenced the privatisation of British Airways as an example of the global shift away from state-run carriers.

“We cannot remove subsidy only to start subsidising a national airline,” he said, warning against repeating the failures of the defunct Nigerian Airways.

Keyamo proposed alternative approaches, including franchising the national carrier brand to private investors or strengthening existing domestic airlines.

According to him, these options are more sustainable and aligned with global best practices.

The minister reiterated the government’s ambition to position Nigeria as a leading aviation hub in Africa.

He outlined key priorities, including infrastructure upgrades, improved passenger processing systems, and enhanced capacity for local airlines to compete on international routes.

“With the right infrastructure and access to aircraft, Nigeria can fully utilise its bilateral air service agreements and compete globally,” he said.