Low maintenance, foreign exchange stability and bank financing are currently driving local carriers to buy brand-new and modern aircraft.
For decades, local carriers had relied heavily on legacy, mid-life aircraft to minimise initial capital expenditure. Today, an influx of factory-new and modern aircraft across airport tarmacs from Lagos to Uyo reflects a deliberate shift toward younger, lower-maintenance fleets.
Industry data highlights a steady stream of fleet additions across leading domestic operators:
Following the addition of a Boeing 737-800 Next Generation (189-seat economy layout) in May, Air Peace took delivery of a factory-new Embraer E175. This builds on a delivery program that brought in its second and third Embraer 190 aircraft between September and December 2025.
State-owned Ibom Air recently welcomed its third Airbus A220-300 at Victor Attah International Airport in Uyo—the second direct delivery under an ongoing 10-jet order with Airbus.
United Nigeria Airlines recently expanded its operational capacity with two Boeing 737-800NG aircraft landing at Murtala Muhammed Airport in Lagos to service core domestic routes.
ValueJet is also advancing its regional network across West Africa. The airline received its first Boeing 737NG aircraft as part of a strategic transition toward narrow-body operations.
Stakeholders say this sudden concentration of modern equipment is driven by the imperative to reduce fuel and maintenance costs, increased participation from domestic banks, and macroeconomic policy reforms that have de-risked aircraft financing.
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BusinessDay’s findings show that for airline operators, the primary propellant toward newer aircraft is operational economics.
Older aircraft carry lower initial leasing costs but impose heavy maintenance penalties, higher fuel burn, and frequent unscheduled Aircraft-on-Ground (AOG) delays.
Olumide Ohunayo, Director of Research at Zenith Travels, notes that local airlines are applying lessons learned from earlier operating models:
“These carriers first used dry and wet leases to build operational experience and evaluate market demand before zeroing down on aircraft orders. The main goal of acquiring newer aircraft is to cut operating costs, improve dispatch reliability, and boost profitability. Owning or securing long-term lease-to-own structures provides sustainable, long-term gains over short-term wet leases.”
Sindy Foster, Principal Managing Partner at Avaero Capital Partners and Managing Director at NYLON Marketing, stresses that decisions vary based on specific route dynamics:
“Airlines are making acquisition decisions according to their specific requirements. Air Peace demonstrates this well: its fleet strategy incorporates new aircraft, secondary-market acquisitions, and leased capacity. The underlying driver is economics—matching the right aircraft capacity, range, and fuel burn to the commercial performance of the routes served.”
Historically, foreign exchange illiquidity and high country-risk ratings prevented Nigerian carriers from securing long-term aircraft financing. Today, domestic commercial banks are stepping in to provide balance-sheet support and syndicated loan structures.
Seyi Adewale, Chief Executive Officer at Mainstream Cargo Limited, emphasizes that local financial institutions have developed a deeper understanding of aviation cash flows:
“Local banks are beginning to understand aviation economics and are now confident to finance procurement. Furthermore, direct engagement by the Minister of Aviation and Aerospace Development with aircraft manufacturers has encouraged them to offer more favorable financing terms and reduced insurance surcharges.”
Foster adds that credit-enhancement mechanisms have bridged the gap between domestic capital and international asset owners:
“Structures like Stand-by Letters of Credit (SBLCs) allow a Nigerian commercial bank to provide security to an aircraft lessor or lender, with additional support from a confirming bank or insurer. Combined with progress on the Cape Town Convention and IDERA, this evolving ecosystem makes transactions possible that were previously difficult to structure.”
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