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More Than 75% of Planes Operating in Nigeria Are Wet-Leased

More Than 75% of Planes Operating in Nigeria Are Wet-Leased
For several years, Nigeria’s aviation sector has been characterized by a heavy reliance on wet-leased aircraft—planes that are provided, crewed, maintained, and insured by foreign lessors but operate under local airline branding. Recent data reveals that over 75% of the aircraft flying within Nigeria are wet-leased, highlighting the industry’s dependence on this expensive and complex arrangement.
Challenges of Wet Leasing in Nigeria’s Aviation Sector
This dependence on wet leasing is driven largely by necessity rather than preference. Fewer than a quarter of the aircraft in Nigeria are owned outright by local carriers, and many of these are currently grounded due to maintenance issues or financial constraints. The shortage of operational, locally owned aircraft has resulted in frequent flight delays and cancellations, eroding passenger confidence and impeding the sector’s growth.
Financially, the wet-lease model presents significant challenges. Payments for wet leases are denominated in US dollars, while Nigerian airlines generate revenue in the depreciated Nigerian Naira. This currency mismatch exposes operators to considerable financial risk, depletes the country’s foreign exchange reserves, and complicates long-term strategic planning. The high costs associated with wet leasing compel airlines to increase ticket prices, thereby restricting the expansion of domestic air travel and diminishing the competitiveness of Nigerian carriers relative to foreign airlines.
Operationally, wet leasing limits local control over maintenance schedules and necessitates reliance on foreign crews and technical personnel. This reliance stifles the development of indigenous expertise and perpetuates dependence on external partners. The recent grounding of several MD-11 aircraft due to safety concerns has further tightened the availability of wet-leased planes, potentially triggering market adjustments and heightened scrutiny from investors.
Efforts to Reform and Build Capacity
Industry stakeholders have commended the Minister of Aviation and Aerospace Development, Festus Keyamo, for initiatives aimed at addressing these systemic issues. A notable development was the domestication of the Cape Town Convention (CTC) last year, which aligns Nigeria’s legal framework with international standards to facilitate aviation financing. The CTC is designed to reduce lender risk, lower borrowing costs, and streamline asset recovery processes, thereby creating conditions conducive to more favorable dry-lease agreements in the future.
Nonetheless, experts warn that the benefits of the CTC may take up to five years to fully materialize. In the interim, Nigerian airlines remain largely excluded from the global dry-lease market due to historical regulatory non-compliance, necessitating continued reliance on wet leases. Competitors may seek to negotiate better lease terms or invest in expanding their own fleets to reduce dependency, but such transitions require substantial time and capital investment.
As Nigeria’s aviation sector contends with these challenges, the emphasis remains on enhancing local capacity, improving regulatory adherence, and fostering a more sustainable business environment. Until these objectives are achieved, the predominance of wet-leased aircraft will continue to define both the opportunities and obstacles facing the industry.

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