The Federal Executive Council (FEC) approved the establishment of an Aviation Leasing Company (ALC) under a public-private partnership (PPP) arrangement. It also approved the development of an Electronic Civil Registration and Vital Statistics System (eCRVS), a platform that will effectively keep electronic records of birth and death registrations.
Both approvals were given following the issuance of full business case (FBC) compliance certificates by the Infrastructure Concession Regulatory Commission (ICRC), the agency statutorily established to regulate PPPs.
The ALC, which will be executed by Messrs AJW Consortium as the concessionaire, seeks to provide an opportunity for local leasing of aircraft to both domestic and international carriers, alleviate the problems of aircraft and engine leasing, reduce leasing rates as well as high insurance premium charges to Nigerian airlines.
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It will facilitate the ease of doing business for foreign lessors with Nigerian domestic airlines being a one-stop-shop, thereby limiting capital flight and the forex demand.
The project will create employment opportunities for Nigerians, which will have a multiplier effect on the economy. The ALC will provide leasing opportunities for Nigerian and African airlines to boost their fleet size, alleviate the problem of aircraft leasing and high insurance premium charges, provide an alternative to foreign lessors and introduce competition, which would relax the terms and conditions currently obtainable, thereby facilitating growth and development.
A statement by the Acting Head, Media and Publicity of the ICRC, Ifeanyi Nwoko, hinted that the ALC will commence with leasing eight aircrafts in its first year of operation, increasing the portfolio as it grows to 50 leased aircrafts after the 7th year and remains constant at 70 by 2034.
The ALC would then starts to purchase aircraft outright (instead of lease) after approximately seven years, once the portfolio exceeds 50 leased aircraft.
The project is approved by the Federal Ministry of Aviation as the grantor.
For eCRVS, N5.3 billion private sector fund is to be injected by the concessionaire, Messrs Barnksforte Technologies Limited.
The project, which has the National Population Commission as the grantor, seeks to capture and verify births and deaths in Nigeria and provide attestation and verification of certificates to endusers on the platform.
Prior to this, registrations have been carried out manually, a process that has been characterised by low coverage and inadequate data. The private party will design, finance, build, operate and transfer the project to the government at the end of the concession period of 15 years.