Festus Keyamo, Minister of Aviation and Aerospace Development, has disclosed that the Federal Government has paid off 98% of trapped airline funds withheld by the immediate past administration—a move that, according to the Minister, will boost confidence in the country’s aviation sector, news.ng reports.
Keyamo made this known at the Aircraft Acquisition and Investment Summit in Lagos on Wednesday.
The Minister noted that the achievement is a breakthrough in gaining trust among international airline operators in the country, as well as financiers and investors who have encountered challenges in repatriating trapped funds.
Furthermore, the Minister emphasised that the development is in line with best global practices in the aviation sector, making reference to the International Air Transport Association (IATA).
He said, “Beyond the legal reforms, we have made measurable progress on the long-standing issue of trapped airline funds. For instance, IATA reported that Nigeria has cleared ninety-eight per cent of previously blocked airline funds by mid-2024.”
According to the Minister, this is “a clear example of how backlog resolution can be successfully achieved through constructive engagement and phased repatriation.”
Keyamo, a Senior Advocate of Nigeria (SAN), stressed that the move by the current administration of Bola Ahmed Tinubu is an indication that the country is committed to financial credibility.
He stated, “That action sent an important message to global airlines, global financiers, and global investors. Nigeria understands that liquidity, convertibility, and repatriation are not side issues, they are foundational to market confidence.”
The Honourable Minister, in his remarks, disclosed that the government is shifting attention from reforms to how it can attract financing to execute its audacious acquisition of more aircraft that will drive growth and expansion in the aviation sector.
“We must now move from reforming the framework to structuring the instruments—leases, guarantees, insurance-backed structures, export credit support, local banking participation, and development finance partnerships—that can translate legal progress into actual fleet growth.
“Capital flows where confidence exists, and confidence grows where institutions are credible, rules are predictable, and reforms are sustained,” he noted.
On some of the achievements recorded so far, the Minister noted, “We have continued to deepen regulatory and institutional reforms across the aviation ecosystem. Nigeria Civil Aviation Regulations 2023 updated our regulatory framework in line with contemporary International Civil Aviation Organisation (ICAO) requirements across operations, safety management, airworthiness, aerodrome standards, and economic oversight.”
In addition, Keyamo disclosed that the Ministry invested in acquiring the Air Peace MRO facility in Lagos and a $10 million Axiget MRO project in Abuja.
Also, the Minister said that the government is committed to upgrading the Murtala Muhammed International Airport (MMIA) in Lagos, which will gulp close to $500 million.
“We didn’t borrow that money. Mr President made that money available in cash. You’ll be very proud of what you see at the Lagos airport in the next 24 months,” he assured.
