FG secures Public-Private Partnership agreement for MRO facility in Abuja 

The Federal Government has signed a Public-Private Partnership (PPP) agreement to establish a Maintenance, Repair, and Overhaul (MRO) facility in Abuja.

The PPP arrangement is a strategic choice, leveraging private sector investment to meet the growing demand for aircraft maintenance in Nigeria without relying solely on government funding.

This disclosure was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Arise TV on Tuesday.

“We have also signed an agreement on PPP to establish an MRO in Abuja. That has been signed, and it’s only through PPP because the government cannot fund it fully,” Keyamo stated.

He highlighted the significance of this agreement, emphasizing the role of the PPP in making the project a reality and acknowledging the financial constraints that necessitate private sector involvement in such large-scale projects.

The minister also provided an update on the MRO facility being developed by Ibom Air, the Akwa Ibom State-owned airline, noting that the project has made significant progress.

According to him, the MRO for narrow-body aircraft is about 90% complete, with technical support from Airbus of France.

More insights  

• Keyamo offered additional insights into Nigeria’s MRO plans, highlighting Boeing’s commitment to supporting the country’s aviation maintenance sector.
• He shared that during a recent visit to the United States, the Federal Government secured Boeing’s agreement to provide technical expertise and support for the establishment of MRO facilities in Nigeria.
• This partnership aims to elevate the standards of aircraft maintenance within the country, positioning Nigeria as a strategic hub for aviation services across West and Central Africa.
• Beyond this collaboration with Boeing, Keyamo stated that the Federal Government is also focused on attracting investment through Public-Private Partnerships (PPPs) to boost the MRO sector.
• He noted that the Aviation Ministry has initiated a global campaign to draw investors interested in developing MRO facilities across Nigeria.

“We are advertising globally for people to come and invest in MROs in Nigeria,” Keyamo explained, emphasizing that the country presents a lucrative opportunity for such investments, given the lack of major MROs in the region.

Keyamo emphasized that these investments would boost Nigeria’s aviation industry and address challenges faced by airlines, which currently rely on overseas facilities for routine maintenance. Establishing local MRO capabilities could cut down operational delays and costs, positioning Nigeria as a key player in regional aviation maintenance.

What you should know  

• To attract investment in Nigeria’s aviation sector, the Federal Government has established task forces within the Infrastructure Concession Regulatory Commission (ICRC) and the Ministry of Aviation to drive investment through public-private partnerships (PPPs).
• This initiative aims to attract private capital to bridge infrastructure gaps and stimulate economic growth.
• In August 2024, major Nigerian airlines, represented by the Airline Operators of Nigeria, signed a Memorandum of Understanding (MoU) with Boeing to enhance aircraft acquisition, safety practices, and other key aspects of the aviation industry.
• The MoU covers nine critical areas, including technical support, which is a key component of the agreement.