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AfDB, Afreximbank agree to raise $20bn for establishment of MRO in Nigeria

Nigeria may after all regain its pride in sub-Saharan aviation hub from Ghana following fresh deal between African Development Bank (AfDB) and African Export, Import Bank (Afreximbank) to raise capital base of about $20 billion for the actualisation of federal government’s plan to establish aircraft leasing company and Maintenance, Repair and Overhaul (MRO) facility.

This is in line with the two financial institutions’ objective to support aviation development in Africa in order to expand and improve inter-city connectivity in the region and give teeth to Single African Air Transport Market (SAATM), a treaty signed by the African Union (AU) to promote air connectivity in the continent.

Though Nigeria is yet to sign the AU’s SAATM, indications emerged weekend that the two banks have keyed into the plan by the government of Nigeria to establish the leasing company, which it planned the national carrier, which would be birthed before the end of 2018 would source its aircraft from.

The source said that it is projected that part of the fund would be used to acquire about 50 medium range aircraft for short-haul flights to various destinations in West and Central Africa in addition to domestic operation. “With about $4 billion the leasing company will acquire about 50 medium size aircraft for both domestic and regional flights.