The African Development Bank (AfDB) and the Nigerian government have signed a letter of intent (LOI) to operationalise the Integrated Aviation Transformation Programme (IATP) for Africa.
The $7 billion continent-wide initiative aims to modernise Africa’s aviation ecosystem and mobilise capital for the sector.
In a letter dated May 26, 2026, AfDB had confirmed the appointment of Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, as the African champion for the programme, citing Nigeria’s leadership in aviation policy reforms.
The agreement between Nigeria and AfDB was finalised on May 28, 2026, during the AfDB’s Annual Meetings in Brazzaville, Congo, where Keyamo signed on behalf of the country.
In a statement posted on his official X handle, Keyamo said that with the official signing of the agreement, “both sides (Nigeria and AfDB) have committed to work assiduously to operationalise the Bank’s laudable programme for Aviation in Africa (IATP).”
Earlier, the minister attended a dialogue session with the President and Governors of the AfDB, where he addressed them on the opportunities presented by the $7 billion programme of the IATP for Africa and especially for Nigeria.
At the session, the minister said he unveiled President Bola Ahmed Tinubu’s renewed hope Agenda for the aviation sector and highlighted the potentials of the sector, especially the newly approved Nigeria Aircraft Leasing Company and why the Bank should mobilise capital to support it.
He explained that Nigeria’s aviation sector reform framework can form the template for other African Nations to emulate. “I reiterated that Nigeria has done the groundwork to enable the takeoff of such an initiative, including domesticating the Cape Town Convention, updating its IDERA and reworking its aviation insurance policies to meet global industry standards,” Keyamo stated.
The Nigeria Aircraft Leasing Company (NALC), recently approved by the Federal Government, aims to solve one of the biggest challenges for local airlines: acquiring aircraft.
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It is expected to stabilise operations, reduce flight cancellations, and lower airfares. The company is designed to be substantially private, with the government contributing minimal equity, primarily offering a sovereign guarantee. Nearly all funding will come from private investors and development banks.
Nigeria has been positioning itself for this initiative by undertaking key reforms to build investor confidence, including domesticating the Cape Town Convention and updating its IDERA framework to assure lessors of their rights to repossess aircraft.
According to the minister, the AfDB president expressed delight with the presentation and reaffirmed the bank’s commitment to the success of the IATP in Africa and particularly in Nigeria.
“After the session, I unveiled the COUNTRY COMPACT for Nigeria’s Aviation sector and proceeded to a signing ceremony of a LETTER OF INTENT (LOI) between the Bank and the Federal Republic of Nigeria, where both sides committed to work assiduously to operationalise the Bank’s laudable programme for Aviation in Africa (IATP),” the minister added.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X