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A dry lease in the aviation sector refers to a contract where a leasing company (lessor) offers an aircraft to another party (lessee) without including crew, maintenance, insurance, or additional operational support.

Keyamo revealed the information on Wednesday while participating in the groundbreaking ceremony for Air Peace’s upcoming maintenance hangar at the Murtala Muhammed International Airport in Lagos.

He stated that the milestone is achieved via Air Peace, after Nigeria was taken off a global blacklist due to the implementation of the Cape Town Convention.

For twenty years, Nigerian airlines have depended exclusively on wet leases, but Keyamo pointed out that renewed international confidence in the country’s aviation sector has shifted the situation.

He stated that wet leases imposed significant costs on travelers via higher ticket prices, expensive maintenance, and additional operational expenses.

This is the first instance where we will be entering into a dry lease. A dry lease indicates that trust has been restored within the Nigerian market.

“They are providing you with the plane. Operate it on your own. I signed a personal guarantee for Air Peace to secure that dry lease. I risked my life and my reputation,” he stated.

On Air Peace’s upcoming Maintenance, Repair, and Overhaul (MRO) facility, Keyamo stated that the project would help Nigeria save significant amounts of foreign exchange and reduce capital outflow.

The amount of foreign exchange this will save for the country is remarkable. Air Peace alone spends approximately N180 billion annually on maintenance; picture what other airlines are spending.

Fund that should stay within our authority left. This is capital flight. With this facility in place, we will ensure it remains in Nigeria.

We are now going to draw people in to contribute their funds, not just our own, but also to attract foreign investments.

“In the entire region of West Africa and Central Africa, there are no quality MROs. The positive aspect is that this facility will be capable of handling wide-bodied aircraft. Such a capability is not available across the entire area of West Africa and Central Africa,” he stated.

He acknowledged President Bola Tinubu’s recent trip to Brazil for facilitating Embraer’s collaboration with Air Peace in offering technical assistance for the new facility. He stated that backing local operators is a key part of his responsibilities, with the Federal Government dedicated to enhancing domestic airlines.

The official also mentioned that the MRO would implement a flight simulator for pilots, decreasing dependence on foreign training and opening up opportunities for earning foreign currency. He urged commercial banks to invest again in the aviation industry, emphasizing that aircraft financing had become more stable.

Keyamo also mentioned that Air Peace has received permission for four new international routes—Italy, Canada, Paris, and Istanbul. However, he expressed concern that Nigerian airlines currently account for only approximately five percent of outbound international passenger travel.

In August, Air Peace revealed the initiation of its MRO project in partnership with Brazilian aircraft manufacturer Embraer, with completion anticipated in 12 to 15 months.

The facility will enable Embraer aircraft to be maintained in-house, reducing expenses and time required for preparation.

Chairman Allen Onyema stated, “By September 17, we will launch the start of construction for our new MRO, and Embraer will handle maintenance for Embraer aircraft. You will now be able to do this here, and individuals will also travel to Nigeria to carry out the same.”

Onyema highlighted that the airline’s upcoming Nigeria-Brazil route, set to launch in the third quarter of 2025, was obtained based on merit and capability, rather than solely due to investment in Embraer.

He stated, “In Brazil, they have signed multiple Memorandums of Understanding, but what truly caught my attention was their collaborative approach, which respects our sovereignty and offers mutual benefits… President Lula’s warmth demonstrated a sincere desire to cooperate with Nigeria.”

Keyamo also highlighted the significance of linking both nations: “Brazil is the largest economy in South America, and Nigeria is regarded as the biggest economy in Africa. Therefore, connecting these two economies was crucial for both presidents,” he mentioned, noting that bilateral trade had declined from $10 billion to $2 billion over the last ten years.

The launch of Air Peace’s MRO center and the arrival of the dry-leased planes signify a major milestone for Nigeria’s aviation industry—enhancing trust, cutting dependence on costly wet leases, preserving foreign currency, and establishing the nation as a key center for aircraft repair and related services.

Provided by SyndiGate Media Inc. (Syndigate.info).