Air Peace Defrauded of $2 Million by Foreign Leasing Company
Air Peace Chief Executive Officer, Allen Onyema, has disclosed that the airline lost $2 million to a foreign aircraft leasing company — but chose not to pursue legal action to protect Nigeria’s aviation industry from further international stigma.
Speaking at the 29th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, Onyema revealed that the incident occurred during a period when Nigeria was unofficially blacklisted in global aviation markets due to previous breaches of contract by some Nigerian airlines.
“A foreign company defrauded us of $2 million. Even when I knew it was going to happen, I let the transaction go through to protect the industry. If I had stopped it, Nigeria’s image would have suffered even more,” Onyema explained.
Why Air Peace Did Not Fight the $2 Million Loss
Protecting Nigeria’s Aviation Reputation
Onyema said the decision not to pursue the matter was a strategic sacrifice. If Air Peace had blocked the transaction, it could have led to renewed international distrust of Nigerian airlines, making it harder for local operators to secure dry-lease opportunities.
Dry-leasing — the arrangement where an airline rents an aircraft without crew, maintenance, or insurance — is common among global carriers and essential for fleet expansion.
Details of the Fraud
The foreign company claimed the funds were for aircraft parts but failed to deliver. Instead, they kept the aircraft and the money. Efforts by the Nigerian government to intervene were dismissed by the company as a “private business matter.”
Financing Aviation in Nigeria: Integrity and Challenges
High Interest Rates and Stringent Conditions
Onyema criticised the 35% interest rates on loans in Nigeria and the excessive collateral demands from banks, which often require assets far beyond the value of the loan.
“Some banks will tell you to bring your great-grandmother’s grave as collateral. This happens because in the past, people took loans and never paid back,” he said.
The Need for Financial Discipline
The Air Peace CEO stressed that financial integrity is the foundation of successful aviation financing. He credited Air Peace’s growth to disciplined repayment habits, which have earned the trust of banks.
“Today, I can call my bank and get funding without mortgaging all my assets. This comes from building credibility over time,” Onyema said.
Government Support and Industry Prospects
Central Bank Window for Airlines
Onyema called on the federal government to create a special forex window through the Central Bank of Nigeria or the Bank of Industry, allowing airlines to acquire dollars at a reduced rate for operational expenses.
Return of Dry-Lease Aircraft After 12 Years
He applauded President Bola Tinubu’s administration for securing dry-leasing options for Nigerian airlines — a milestone that will see the first dry-leased aircraft in 12 years arriving in the country within two weeks.
“Dry-leasing is a game-changer. Major global airlines like Delta and Emirates operate largely on dry-lease. This move will boost competitiveness for Nigerian carriers,” Onyema said.
Conclusion
Allen Onyema’s revelation not only exposes the risks Nigerian airlines face in international transactions but also underscores the importance of integrity, disciplined financing, and strategic government support in transforming the country’s aviation sector.
