FG secures financing window for domestic airlines to sustain operations

By Abubakar Yunusa

The federal government says it has secured a window for indigenous airlines to explore options for financing and aircraft leasing with players in the global space.
Festus Keyamo, minister of aviation and aerospace development, spoke over the weekend during the 10th year anniversary of Air Peace.
Keyamo said Nigeria has been invited to the Republic of Ireland where global lessors will be unveiling packages for carriers.
The minister said the arrangement is part of the support programme packaged for indigenous operations who have been struggling with opportunities to secure aircraft to boost their fleet and other cost-saving measures.
“The forum will provide a window for global players in the aircraft financing and leasing space to interface with Nigerian carriers on sustainable models,” Keyamo said.
He also said the federal government is becoming increasingly worried why Nigerian carriers experience bust and boom circles.
A boom-bust cycle is when a rapid increase in business activity in the economy is followed by a rapid decrease, and this process is repeated.
According to Keyamo, the high decline rate of indigenous carriers has become so disturbing despite the Boeing study on the inherent opportunities in Nigeria concerning the air transport value chain.
“Why is Nigeria experiencing a high mortality rate for airlines? The federal government is formally addressing this concern and with the interventions currently in place, we are getting closer to fixing the challenge,” he said.
“Issues about access to aircraft leasing and financing are under focus as the government is utilising every opportunity to assist our local carriers.”
On October 12, Keyamo said insufficient aircraft in Nigeria is the primary reason for frequent flight cancellations and high ticket prices for local and international flights.
“Let us work together to foster regulatory clarity, promote innovation and enhance global cooperation. Embracing FATF standards strengthens trust and stability in virtual asset markets. Together, we shape the future. By working together, we can build resilient systems that promote transparency, accountability, and sustainable growth in our capital markets.
“Thank you for your dedication and your presence here today. Together, let us commit to fostering a resilient and compliant capital market that meets global standards and supports Nigeria’s economic growth” he added.
Established in 1989, the Financial Action Task Force (FATF) sets global standards for combating money laundering, terrorist financing and proliferation financing. FATF has been instrumental in establishing international standards to combat money laundering, terrorist financing, and other financial crimes. FATF guidance helps countries implement effective regulations, addressing risks associated with virtual assets.
In a Goodwill Message, Director/ CEO for Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari said as Nigeria continues to experience the transformative impact of virtual assets on the financial landscape, the nation is also reminded of the accompanying risks particularly in the areas of money laundering, terrorist financing and other illicit activities.

She said, “The rise of VASPs has necessitated not only a rethinking of our regulatory strategies but also the adoption of more dynamic technology-driven approaches in the fight against financial crimes. As regulators, law enforcement agencies, financial institutions and stakeholders in the fight against financial crime, we must ensure our regulatory frameworks remain robust and effective.

Represented by Dr. Mohammad Jiya, Chief Operating Officer, Emerging Technologies and Innovations, NFIU, Bakari said FATF has recently update its standards to include virtual assets and VASPs within the Anti-Money Laundering, Combating the Financing of Terrorism and Combating
Proliferation Financing, AML/CFT/CPE compliance framework adding that in Nigeria, this requires continuous efforts to strengthen the regulatory environment to ensure that the challenges posed by these emerging financial products and services are effectively tackled.

“It is important to put necessary measures in place for the next Mutual Evaluation of the country’s AML/CFT/CPE Regime by FATF which is scheduled to take place in 2027. Virtual Assets, cryptocurrency related activities and VASPs will take the centre stage of the Mutual Evaluation because of the country’s position in the Global Cryptocurrency adoption index

“NFIU remains fully committed to collaborating with all stakeholders l, including the SEC, financial institutions, and law enforcement agencies, to enhance the effectiveness of our AML/CFT systems,” she added.