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Fidelity Bank’s Aviation Lifeline: Powering Nigeria’s Skyward Growth
By Prince Benson Davies
Nigeria’s aviation sector is capital intensive and governed by strict International Civil Aviation Organisation standards. As a signatory to the Convention on International Civil Aviation, Nigeria must uphold ICAO’s recommended standards and practices in all aviation dealings.
The sector faces persistent headwinds. High operating costs, volatile exchange rates, and aircraft repossession challenges have created a high-risk perception among international financiers and lessors. That risk profile often translates into tough financing terms or outright reluctance to engage with Nigerian carriers. Many domestic airlines struggle to secure leases on favourable terms or access funding for aircraft acquisition and maintenance.
Despite Nigeria’s strategic location, growing population, and status as West Africa’s gateway, analysts note the sector still battles to attract investment and newer, fuel-efficient aircraft under competitive leasing terms. Domestic carriers continue to shrink due to inadequate financing and, in some cases, poor financial discipline. Many operators blur the line between operating funds and personal money, depleting capital and defaulting on loans. This pattern led several banks to avoid credit exposure to airlines altogether.
Fidelity Bank’s Early Bet on Air Peace
While most banks avoided the sector, Fidelity Bank backed Air Peace and its Chairman, Barrister Allen Onyema, more than 10 years ago. Air Peace began operations on October 24, 2014 with seven aircraft: three Dornier 328s and four Boeing 737-500s. The launch fleet was larger than many start-ups, yet the airline was still new and unproven.
Fidelity Bank stayed with the carrier and financed new aircraft from Boeing. In 2018, Dr. Allen Onyema signed an agreement with Boeing for 10 new aircraft, with Fidelity Bank providing the funding. That support enabled Air Peace’s expansion. Today it is the largest airline in West Africa by fleet and size.
The airline has remained loyal to Fidelity Bank despite multiple banking options. No Nigerian carrier currently matches Air Peace in daily turnover and liquidity. At a press conference announcing Abuja-London Heathrow flights, Onyema disclosed the airline operates 49 aircraft: 36 purchased outright and four on wet lease. He attributed the Heathrow slot win partly to the airline’s financial integrity.
On fleet maintenance, Onyema described Air Peace’s standards as top notch, citing partnerships with Israeli Aerospace Service and OEMs that have earned international recognition. He added that financial integrity has strengthened confidence among financial institutions investing in aviation.
“Banking industry confidence has grown due to our financial integrity. Fidelity Bank celebrated us recently. Our financial integrity is the reason for our expansion. Every Nigerian bank now wants to partner with us because we see borrowed money as other people’s money, they are depositors’ money, so we are prudent with it. Banks don’t look over their shoulders when they are dealing with us,” he said.
On Sunday, April 21, 2024, Fidelity Bank hosted an evening to honour Air Peace for becoming the first Nigerian airline in recent years to launch direct Nigeria-London flights. The dinner also marked the airline’s 10th anniversary. It celebrated Air Peace Chairman Dr. Allen Onyema for breaking into the international aviation space.
Air Peace’s debut London flight on March 30, 2024, priced tickets at N1.2 million, compared to N3 million previously charged by other carriers on the route. Foreign airlines have since reduced fares to stay competitive. The entry has drawn praise from Nigerians at home and abroad. Lower fares have increased liquidity for the flying public.
Onyema noted that when Air Peace started in 2014, only Fidelity Bank supported it through the early phase. “This bank is the only bank that responded to us in the early days. They believed in us. People that earn hundred thousand a month, they give them loans. I call it our journey with Fidelity Bank,” he said.
He recalled Dr. Nneka Onyeali-Ikpe’s support while she was an Executive Director at Fidelity. “The team was always there when the road was very rough. Words have failed me because I didn’t know this day will come when an indigenous institution will be celebrating another indigenous institution. It is very encouraging.”
Fidelity Bank Managing Director and CEO Dr. Nneka Onyeali-Ikpe said the celebration was deserved. She noted Air Peace had grown through financial discipline from a few aircraft to 24, and is putting Nigeria on the world stage. “My experience with them underscores what you call financial discipline. When you go through their accounts, you will not see personal spend. That is a lesson for everybody. We are here to celebrate them. This is a major milestone. We have supported them, no doubt, but they have also been very loyal to us. Because they have been a big fan for a very long time and all the big boys wanted them but Allen and his team said no.”
Backing Ibom Air’s Fleet Expansion
Fidelity Bank also played a central role in Ibom Air’s growth. Former Managing Director Captain Mfon Udom disclosed that Fidelity was the lead financier for the acquisition of Ibom Air’s Airbus A220-300 aircraft. At the aircraft reception ceremony at Victor Attah International Airport, Uyo, Udom said, “There are several banks that are supporting Ibom Air, but this aircraft in particular has been made possible by Fidelity Bank and Union Bank.”
He added that by 2026 the airline plans to operate 18 aircraft and add two new destinations later this year. The new aircraft will strengthen services on existing routes. “My speech would be incomplete without acknowledging the role played by Fidelity Bank as the lead financier of the acquisition of Ibom Air’s Airbus A220-300 aircraft,” Udom stated.
Representing Dr. Nneka Onyeali-Ikpe at the event, Mr. Charles Nwoke, Executive Director, Risk Management, Fidelity Bank, said: “As the market leader in airline financing in Nigeria, Fidelity Bank is proud to support Ibom Air in this venture. The partnership reflects our commitment to being the bank of choice for the people of Akwa Ibom State. And we pledge to do more for our valued customers as we continue to pursue our corporate mandate of helping individuals to grow, businesses to thrive and economies to prosper.”
Supporting Enugu Air’s Takeoff
The recently launched Enugu Air also received strong financial backing from Fidelity Bank. At the launch at Akanu Ibiam International Airport, Enugu, Dr. Nneka Onyeali-Ikpe described the airline as proof that aviation drives economic growth.
“It is an honour to join you today as we celebrate the official launch of Enugu Air. As the lead financier of this visionary project, our support for Enugu Air reflects our long-standing belief in aviation as a driver of economic growth, regional connectivity, and national transformation,” she said.
“At Fidelity Bank, we stand firmly behind its potential to unlock new corridors of opportunity by boosting tourism, accelerating commerce, and creating thousands of jobs across the Southeast. We are proud to finance tomorrow’s opportunities today, a powerful affirmation that ‘Tomorrow Is Here’ in Enugu State and across Nigeria’s aviation sector.”
Policy Tailwinds: CTC Practice Direction
Nigeria recently signed the Cape Town Convention Practice Direction in aviation, led by Vice President Kashim Shettima and Aviation and Aerospace Development Minister Festus Keyamo. The move aims to cut airline operating costs by improving aircraft leasing and financing frameworks. The CTC treaty supports asset-based financing and leasing of aviation equipment, expands funding options, and reduces costs. The policy shift is expected to encourage Fidelity Bank and other financiers to support more domestic airlines seeking funds for fleet and route expansion.
