Nigeria has taken another major step toward strengthening its aviation industry after signing a Letter of Intent with the African Development Bank (AfDB) as part of a broader continental aviation transformation initiative. The agreement was signed on Thursday in Brazzaville, Congo, during a high-level dialogue session involving the President and Governors of the AfDB.

The Minister of Aviation and Aerospace Development, Festus Keyamo, signed the agreement on behalf of Nigeria. The development was confirmed in a statement issued by the minister’s Special Adviser on Media and Communications, Tunde Moshood.

According to the statement, Keyamo attended the event in his role as the African Champion of the Integrated Aviation Transformation Programme, an AfDB-backed initiative designed to improve aviation infrastructure, financing, and connectivity across Africa.

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During the meeting, Keyamo presented Nigeria’s aviation development agenda and outlined opportunities available under the African Development Bank’s proposed $7 billion aviation support programme.

The minister used the occasion to unveil President Bola Tinubu’s Renewed Hope Agenda for the aviation sector, emphasizing the administration’s commitment to transforming Nigeria into a leading aviation hub on the continent.

A major highlight of his presentation was the newly approved Nigeria Aircraft Leasing Company, which the government sees as a strategic tool for expanding local airline operations and improving access to aircraft financing.

“The Minister unveiled President Bola Ahmed Tinubu’s Renewed Hope Agenda for the Aviation sector and rolled out the potentials of the sector, especially the newly approved Nigeria Aircraft Leasing Company and why the Bank should mobilise capital to support it,” the statement said.

Keyamo explained that one of the biggest challenges facing Nigerian airlines has been the difficulty of securing affordable aircraft leasing arrangements. According to him, the establishment of a domestic aircraft leasing company could reduce dependence on foreign leasing firms, lower operational costs, and create more sustainable growth for local operators.

The aviation minister also highlighted several reforms already implemented by the Nigerian government to improve investor confidence and strengthen the country’s aviation financing framework.

Among the reforms mentioned was Nigeria’s domestication of the Cape Town Convention, an international treaty that protects the rights of aircraft financiers and leasing companies. He also referenced updates to the Irrevocable Deregistration and Export Request Authorisation (IDERA) framework, which provides additional legal protection for investors in the aviation sector.

Keyamo noted that the government is also working on aviation insurance reforms and other policy adjustments aimed at making Nigeria’s aviation environment more competitive and attractive to development finance institutions.

According to the minister, these reforms are expected to position Nigeria as a model for other African nations seeking to modernize and expand their aviation industries.

“We have taken deliberate steps to build confidence in Nigeria’s aviation sector and create a stronger environment for investment,” Keyamo reportedly told participants at the dialogue.

The President of the African Development Bank, Dr. Sidi Ould Tah, reportedly expressed strong support for Nigeria’s aviation transformation efforts and pledged the bank’s commitment to the successful implementation of the programme.

According to the ministry, the AfDB leadership acknowledged the strategic importance of aviation in driving economic integration, trade, tourism, and regional development across Africa.

The bank’s backing is expected to strengthen partnerships focused on aviation financing, infrastructure upgrades, and sector-wide reforms not only in Nigeria but across the continent.

Industry observers believe the collaboration could unlock major opportunities for airport modernization, aircraft acquisition, aviation training, and cargo development within Nigeria’s aviation ecosystem.

As part of the engagement, Keyamo also unveiled Nigeria’s Country Compact for the aviation sector. The compact is expected to serve as a strategic roadmap outlining the country’s aviation development priorities and the specific areas where financial and technical support are being sought from the AfDB and other international partners.

The ministry stated that the compact would guide future investments in infrastructure, airline support systems, safety improvements, and aviation technology development.

Analysts say the move reflects Nigeria’s broader ambition to reposition aviation as a key driver of economic growth, job creation, and regional integration under the Tinubu administration.

The signing of the Letter of Intent marks another milestone in Nigeria’s push to attract international funding and strengthen its aviation sector for long-term sustainability.

Experts note that while Nigeria remains one of Africa’s largest aviation markets, the industry continues to face challenges such as limited financing, aging infrastructure, high operating costs, and foreign exchange pressures. The partnership with the African Development Bank is therefore seen as a strategic opportunity to address some of these long-standing issues.

If successfully implemented, the reforms and investments being pursued could significantly improve air travel, expand airline capacity, and boost Nigeria’s competitiveness within the African aviation market.

For now, stakeholders across the industry are watching closely to see how the partnership with the AfDB will translate into practical projects and measurable improvements in the sector.