Market Intelligence
Aviation Finance

Nigeria Aviation Financing

Nigeria is Africa’s largest aviation market by population and one of the fastest growing by passenger demand. With Africa forecasted to take delivery of over 1,300 aircraft by 2043 (three percent of global volume), Nigeria is strategically positioned as a future aviation hub.

Key Investment Insights for U.S. Companies:

1. Aircraft Leasing & Financing Services
  • Nigeria’s aviation sector is underserved in terms of operating leases and dry lease structures. Sale-and-leaseback (SLB) arrangements are still rare in Nigeria, despite their prevalence in the United States, an untapped opportunity for U.S. lessors and capital providers.
2. Pre-delivery Payment (PDP) Financing
  • Pre-delivery payment (PDP) financing structures remain underutilized, presenting entry points for U.S. banks and institutional investors to offer structured aircraft debt instruments.
3. Maintenance, Repair, and Overhaul (MRO)
  • No major MRO facility exists in Nigeria. Aircraft maintenance is outsourced to Europe at $1.5M per check—offering a compelling case for U.S. MRO providers, aviation infrastructure developers, and technical training institutions to invest.
4. Technical Advisory and Training
  • U.S. companies can offer technical lease advisory, crew training, and flight operations consulting, especially in support of fleet commonality and maintenance planning for aircraft.
Strategic Entry Considerations

  • Cape Town Convention compliance allows for aircraft repossession and enhances investor security. See:  https://www.icao.int/sustainability/Pages/Capetown-Convention.aspx

  • High demand exists for narrow-body aircraft, which offer favorable economics on underserved African corridors.

  • U.S. companies have strong brand and technical advantage, particularly in aircraft leasing, financing, and training services.
Conclusion

The door is wide open for U.S. companies to play a strategic role in aviation financing. Opportunities span aircraft leasing, ECA-backed financing, MRO infrastructure, and aviation consulting. Nigeria’s aviation sector is on the cusp of transformation, and early movers will gain competitive advantages in shaping this high-growth market. For more information, contact Banksharon Nwaneri at the U.S. Commercial Service, U.S. Embassy Lagos.