For the past two to three years, Nigeria’s aviation sector has recorded several regulatory milestones, including exiting the Aviation Working Group (AWG) watchlist and achieving a 75.5% compliance score on the Cape Town Convention (CTC) Index, reflecting improved alignment with global aircraft leasing standards.
These gains have been driven by reforms to key legal and regulatory frameworks, including improvements to the IDERA process under the Nigerian Civil Aviation Authority, aimed at strengthening creditor protections in aircraft financing.
However, despite these advances, aircraft leasing activity and broader financing inflows remain limited in practice.
Nigerian-born aviation executive and Chief Operating Officer at Aircraft Finance Germany (AFG), Shiekuma Gemade, offered a detailed assessment of the structural realities shaping global aircraft leasing, aviation financing, and fleet development, with a particular focus on Nigeria’s reform trajectory.
With over two decades of global aviation experience spanning senior roles at Delta Air Lines in operations and maintenance, fleet management exposure, and involvement in Saudi Arabia’s Riyadh Air development project, he brings a cross-market perspective to aircraft leasing and portfolio structuring.
What Shiekuma Gemade is saying
Gemade described Nigeria’s exit from the AWG watchlist as a significant milestone for the country’s aviation industry.
- “Exiting the AWG watchlist is a huge step for Nigeria’s aviation industry… the achievements recorded under Honourable Minister Festus Keyamo over the past two and a half to three years have been remarkable,” he said.
- He added that reaching a 75.5% compliance score within a short period reflects strong leadership and intentional reforms.
According to him, the development sends a strong signal to global aircraft lessors and financial institutions that Nigeria is aligning with international best practices, which should improve investor confidence and access to aircraft leasing and financing.
However, he noted that reforms have not yet translated into significant leasing activity.
Explaining why, Gemade pointed to two key factors:
- Lag effect in global capital markets: He said financial institutions take time to reassess risk, update internal models, and rebuild confidence after regulatory changes.
- Broader ecosystem concerns: He stressed that aviation leasing depends not only on legal frameworks but also on operational realities such as airline profitability, maintenance infrastructure, airport quality, air traffic systems, and fuel price stability.
He explained that lessors evaluate the entire aviation ecosystem, not just contractual protections.
- “Lessors want reassurance not just from policies on paper, but from consistent execution, operational reliability, and broader ecosystem stability,” he said.
Gemade added that countries like Saudi Arabia demonstrate how coordinated national aviation strategies can accelerate sector growth, arguing that aviation development must go beyond regulatory reform to include systemic industry support.
What you should know
Nigeria’s aviation reforms have been widely acknowledged as positive steps toward improving its global standing in aircraft leasing and financing markets.
However, industry observers note that:
- Strong regulatory compliance alone is not enough to attract large-scale leasing inflows.
- Investor confidence depends on broader macroeconomic stability and airline operational performance.
- Sustained reforms across infrastructure, cost efficiency, and airline viability will be critical to unlocking deeper participation from global lessors.
Despite progress, Nigeria’s aviation sector still faces the challenge of converting policy gains into tangible financing and fleet expansion outcomes.
