As Nigeria prepares to welcome its first dry lease aircraft in over 10 years, aviation experts have underscored the numerous benefits of transitioning from wet leasing to dry leasing of aircraft — a move expected to enhance operational efficiency, reduce airfares, and curb capital flight.
This milestone follows efforts led by the Minister of Aviation and Aerospace Development, Festus Keyamo, who, through legal frameworks and diplomatic engagement, rekindled relationships between Nigeria and international aircraft lessors.
Understanding Dry vs. Wet Leasing
Aircraft acquisition is typically done either through outright purchase or leasing. Leasing arrangements generally fall into two categories: wet lease and dry lease.
- Wet lease (ACMI) involves leasing an aircraft along with its crew, maintenance, and insurance. It is commonly used for short-term or seasonal demand surges — such as during Nigeria’s busy Yuletide season — and is typically more expensive due to foreign crew and service costs.
- Dry lease, on the other hand, provides only the aircraft. The lessee — in this case, the Nigerian airline — assumes full responsibility for crew, maintenance, and insurance. This model promotes local capacity building and long-term cost efficiency.
Expert Perspectives on Dry Leasing
In a telephone interview with THISDAY, Captain Ado Sanusi, Managing Director of Aero Contractors Limited, emphasized that dry leasing allows airlines to build local capacity by using their own staff and engineers.
“It encourages technology transfer and reduces reliance on foreign expertise,” Sanusi said. “Dry lease is more affordable, supports long-term planning, and enforces financial discipline through practices like maintenance reserves.”
Sanusi also highlighted the strategic advantage of long-term leases — typically lasting 5 to 7 years — which provide operational stability and allow airlines to better manage maintenance and finances.
Captain Roland Iyayi, President of Topbrass Aviation Limited, echoed these sentiments, stating that dry leasing reduces the initial financial burden while improving safety and operational standards through the use of in-house crews.
“You’re not duplicating payments by keeping your own staff idle while relying on foreign crews, as is the case with wet leases,” Iyayi said.
A New Era for Nigerian Aviation
Also speaking with THISDAY, Amos Akpan, Managing Director of Flights and Logistics Solutions Limited, praised the minister’s efforts in reopening access to dry leasing for Nigerian carriers after nearly two decades.
“Nigerian airlines had been forced into wet leasing due to depleted fleets and lack of financing options. With the return to dry leasing, airlines can expand their fleets more affordably and redirect funds into staff training, maintenance, route development, and infrastructure,” Akpan explained.
He noted that the high cost of capital in Nigeria has made outright aircraft purchases and even domestic financing for leases extremely difficult. The dry lease model, he said, offers a more financially viable alternative.
“Even when international lenders offer favorable terms, local banks still add high charges to guarantee the loan, making financing difficult. Dry lease helps airlines avoid these traps while giving them control over operations and maintenance,” Akpan said.
Operational Advantages of Dry Leasing
Akpan further explained that under dry lease agreements, the lessor retains ownership, while the lessee (airline) assumes operational control and registers the aircraft locally. This arrangement enables Nigerian airlines to strengthen technical capacity while keeping more funds within the country.
He added that the aviation minister’s push to foster a more favorable regulatory environment should continue in close collaboration with the Airline Operators of Nigeria (AON) to maintain momentum and ensure lasting policy reforms.
Conclusion
With Nigeria re-entering the dry lease space, aviation stakeholders are optimistic that this shift will stimulate growth, reduce operating costs, and support long-term sustainability in the country’s aviation sector — marking a turning point after years of dependence on costly short-term solutions.
