Air Peace Dry-Lease Plane and the Future of Aircraft Acquisition in Nigeria’s Aviation Industry
When Air Peace’s Boeing 737-700NG, registered EI-HRN, taxied to a halt at Lagos’ Murtala Muhammed Airport on Friday, November 7th, 2025, the moment resonated across Nigeria’s aviation landscape as more than just the induction of another aircraft. it was the rebirth of confidence between Nigeria and the global aviation community. After nearly a decade of being blacklisted by international lessors, Nigeria has now reclaimed a crucial seat at the global aviation table, thanks to sweeping reforms and renewed government commitment to transparency, investor protection, and industry stability.
It also marked a structural and psychological shift — the return of Nigeria to the community of nations trusted by global aircraft lessors following the near decade in which dry-leasing to Nigerian carriers was practically non-existent due to financial defaults and regulatory uncertainty, the delivery from AerCap Holdings N.V., the world’s largest aircraft leasing company, restored a long-lost confidence in Nigeria’s air transport ecosystem.
For the industry, this wasn’t just a commercial milestone for Air Peace — it was a validation of systemic reform. The transaction, underpinned by the Federal Government’s sovereign guarantee and the newly implemented Irrevocable Deregistration and Export Request Authorisation (IDERA) framework, represents a turning point for aircraft financing and acquisition in Nigeria.
A New Framework of Trust: The IDERA Effect
The significance of this transaction lies as much in policy as it does in metal. The IDERA framework, derived from the Cape Town Convention on International Interests in Mobile Equipment, was fully implemented in Nigeria under the Bola Ahmed Tinubu administration. It guarantees that aircraft lessors can swiftly deregister and repossess aircraft if contractual obligations are breached, providing the legal certainty that global financiers demand.
At the unveiling ceremony in Lagos, Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, emphasized that Nigeria has now institutionalized investor protection through law rather than rhetoric.
“This is not just a pledge made ipse dixit,” Keyamo said. “It is a pledge backed by legislation. We have implemented IDERA, passed the law, and instructed the courts. It is signed by the Chief Judge of the Federal High Court. We now have a legal structure that gives comfort to lessors and financiers alike.”
This development directly addresses the fundamental issue that long crippled Nigerian aviation: the perceived enforcement risk. For years, lessors shied away from leasing aircraft to Nigerian operators, citing difficulties in repossession and uncertainty in judicial outcomes. The absence of IDERA compliance had placed Nigerian carriers outside the global leasing mainstream — a position that drove them toward wet-leasing, a more expensive and operationally limiting alternative.
With the arrival of Air Peace’s dry-leased Boeing 737-700NG, the government’s message is clear: Nigeria is reentering the global aviation financing arena on the strength of legal reliability and regulatory reform.
From Wet Lease Dependency to Financial Sustainability
To appreciate the weight of this achievement, one must contrast dry leasing and wet leasing within the operational economics of airlines.
A dry lease allows an airline to lease an aircraft without crew, maintenance, or insurance, placing full operational control — and responsibility — in the hands of the airline. It is typically long-term, more cost-effective, and a sign of financial maturity. A wet lease, on the other hand, includes the aircraft, crew, maintenance, and insurance from the lessor, often at three times the cost of a dry lease, and used for short-term fleet supplementation.
For Nigerian airlines, this reliance on wet leases was both a symptom and a cause of structural weakness — eroding margins, limiting autonomy, and perpetuating dependence on foreign operators.
Minister Keyamo noted, “A wet lease is three times more expensive than a dry lease. Because of what this government has done in restoring global confidence, the world now trusts us with their equipment.”
This newfound trust could dramatically alter the economics of Nigerian airline operations. Access to dry-leased aircraft means lower operating costs, longer-term fleet planning, and increased competitiveness — especially for carriers like Air Peace expanding regional and intercontinental networks.
Air Peace: A Catalyst for Systemic Renewal
For Air Peace, the dry-lease deal is the culmination of disciplined financial governance and operational credibility. Chairman and CEO, Dr. Allen Ifechukwu Onyema, attributed the success to both government policy and the airline’s reputation for integrity.
“The Federal Government guaranteed this business,” Onyema said. “That’s why I am very grateful to Mr. President. Air Peace will not disappoint. We are carrying on our shoulders the vision and aspirations of this country. If we fail, it will be a disgrace to the nation.”
Onyema’s remarks underscore a broader reality: Air Peace’s achievement is not isolated but emblematic. For over a decade, Nigeria’s poor leasing track record had effectively cut domestic airlines off from sustainable fleet financing. By completing a dry-lease transaction with AerCap — the world’s largest and most conservative lessor — Air Peace has reopened the path for other Nigerian operators to follow.
The airline’s ability to secure this deal, backed by Fidelity Bank’s financing and compliance oversight from the Nigerian Civil Aviation Authority (NCAA), demonstrates the growing maturity of Nigeria’s aviation financial architecture.
Global Validation and Strategic Partnerships
The event drew global attention and participation from key stakeholders. AerCap’s Vice President of Leasing, Mr. Gad Wavomba, described the partnership as “a landmark achievement for Nigeria and a testament to Air Peace’s operational excellence and commitment to growth.” He credited the IDERA framework and government support as key enablers of the deal.
Boeing’s Sales Director for Africa, Mr. Moore Ibekwe Jr., called the transaction “a new benchmark for Nigeria,” adding that the collaboration between Boeing, AerCap, the NCAA, and Air Peace “will strengthen regional connectivity and job creation.”
The Irish Ambassador to Nigeria, Mr. Peter Ryan, framed the event as a renewal of trust between Nigeria and the global aviation community:
“The Irish Aviation Authority, Ryan Aviation, and Boeing came together because they see integrity and vision driving this partnership. This is a new chapter for Nigeria’s aviation industry.” Ambassador Ryan remarked.
Fidelity Bank, which played a financial facilitation role, reaffirmed its long-term partnership with Air Peace. Executive Director, Kevin Ugwuoke, said the financing “represents a natural progression from the bank’s support for previous wet-lease operations,” noting that it reflects the airline’s prudent and transparent management practices.
Such endorsements highlight how this singular transaction has broader symbolic and diplomatic value. It signals to the global leasing and manufacturing community that Nigeria’s risk profile is improving and that its carriers are once again credible business partners.
The Next Frontier: A National Aircraft Leasing Company
Perhaps the most forward-looking policy to emerge from this milestone is the Federal Government’s plan to establish a Nigerian Aircraft Leasing Company (NALC) — a state-backed intermediary designed to pool capital and negotiate fleet acquisitions on behalf of domestic airlines.
Keyamo explained: “We want to put an aircraft leasing company in place so that Nigerian airlines will not have to walk around the world looking for aircraft. With the government’s sovereign guarantee, the project will attract global investors, creating a pool of resources that will support local carriers.”
The NALC model would replicate frameworks used in emerging markets such as India and Indonesia, where government-backed leasing companies leverage sovereign credit to lower the cost of capital for domestic airlines. For Nigeria, this could be transformative, addressing one of the industry’s perennial barriers — access to affordable fleet financing.
Industry Implications: Building a Sustainable Fleet Future
The implications of this development extend beyond Air Peace. Dry leasing availability will reshape Nigeria’s aviation competitiveness in several key ways:
Cost Efficiency: Reduced leasing costs free up capital for route expansion and infrastructure improvement.
Operational Control: Airlines can better manage crew training, maintenance, and safety standards internally.
Fleet Modernization: Easier access to newer, fuel-efficient aircraft improves environmental compliance and reliability.
Investor Confidence: Regulatory consistency under IDERA attracts global financiers, manufacturers, and insurers.
In practical terms, Nigeria is now better positioned to grow its fleet capacity, enhance regional connectivity, and participate more effectively in continental frameworks like the Single African Air Transport Market (SAATM).
The Road Ahead
The successful dry lease of Air Peace’s Boeing 737-700NG is not merely a fleet expansion — it is a strategic inflection point. It demonstrates that Nigeria’s aviation industry can earn back global trust through enforceable regulation, fiscal discipline, and credible governance.
For the Tinubu administration, it validates the ongoing reform agenda. For Air Peace, it confirms its leadership role as both a carrier and a catalyst. And for the Nigerian aviation ecosystem, it reopens the gateway to sustainable, scalable, and globally competitive aircraft acquisition.
As Nigeria prepares to operationalize its own aircraft leasing company, the Air Peace milestone will likely be remembered as the spark that reignited investor confidence — proving that with the right policy architecture, Nigerian airlines can once again lease, operate, and compete on the same terms as the best in the world.
