Principal Managing Partner at Av Aero Capital, Sindy Foster, has called on the Federal Government to establish a dedicated aviation development fund with concessional lending rates for airlines, airport operators, and aviation service providers.
Foster suggested that the fund be managed in collaboration with development finance institutions (DFIs), the Central Bank of Nigeria (CBN), and international financial organizations. She emphasized the importance of engaging institutions like the African Development Bank (AfDB), World Bank, and Export-Import Banks to unlock low-interest, long-term financing for aviation projects.
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Highlighting successful funding models, Foster recommended that the CBN introduce special intervention funds for aviation, similar to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).
Such arrangements could enable commercial banks to refinance loans to aviation operators at lower interest rates.
Foster also proposed tax holidays, import duty waivers on aircraft and spare parts, and reduced VAT on aviation fuel to lower operational costs. She emphasized that Nigeria’s pension funds and Sovereign Wealth Fund (SWF) could be directed into aviation infrastructure through long-term bonds, with government-backed risk guarantees.
Discussing Public-Private Partnerships (PPPs), Foster advocated for structuring airport concessions to attract private investors. She pointed to successful models like the Murtala Muhammed Airport Terminal 2 (MM2) and suggested nationwide expansion.
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Additionally, Foster recommended establishing a government-backed aircraft leasing company to provide Nigerian airlines with affordable leasing options, reducing reliance on high-interest foreign loans.
Foster concluded by stressing the need for a stable policy environment, clear investment guidelines, and reduced bureaucratic hurdles to boost investor confidence. She believes that through a mix of direct funding support, policy incentives, and private sector engagement, Nigeria can overcome financing challenges and significantly advance its aviation sector.
