President Tinubu
By Olamilekan Abayomi
President Bola Tinubu has requested the National Assembly to approve a N1.15 trillion domestic borrowing program to fund Nigeria’s 2025 budget deficit. This request comes after the National Assembly approved a $2.3 billion external loan, and the government is also planning to establish an aircraft leasing company to support local airlines.
The Federal Government is taking steps to boost the aviation sector, including the establishment of a Nigerian aircraft leasing company, which will provide local airlines with access to modern, fuel-efficient aircraft, enhancing their operational efficiency and safety standards. This move is expected to increase the competitiveness of Nigerian airlines and create opportunities for growth in the sector.
Tinubu’s borrowing request has sparked concerns about Nigeria’s rising debt burden, with the country’s total public debt standing at N144.7 trillion (approximately $94.2 billion) as of December 2024. The government has assured that the borrowed funds will be used to finance critical infrastructure projects and support economic growth, but critics argue that the country’s debt burden is becoming unsustainable.
The aircraft leasing company is part of the government’s efforts to revive the aviation sector, which has faced challenges in recent years due to a shortage of aircraft and high operating costs. The company is expected to lease aircraft to local airlines, reducing their operational costs and increasing their capacity to operate more flights.
The success of the aircraft leasing company will depend on various factors, including the government’s ability to provide a conducive business environment and the willingness of local airlines to adopt modern and efficient aircraft. The government has also announced plans to invest in the country’s airports, including the expansion of the Lagos airport and the development of new airports in other parts of the country.
