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ARTICLE · 12 AUGUST 2025

Aviation: Financing And Leasing 2025

Streamsowers & Köhn
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If the interest in an engine installed in an airframe is held by a person other than the person who holds interest in the airframe, the risk of title annexation does exist...

NigeriaTransport
Tamuno Atekebo
Tamuno Atekebo
Chinasa Unaegbunam
Chinasa Unaegbunam
Naomi Kabowei
Naomi Kabowei
Favour Osayuwamen
Favour Osayuwamen
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1. Aircraft and Engine Purchase and Sale

1.1 Sales Agreements

1.1.1 Taxes/Duties Payable Upon Execution of the Sales Agreement

Stamp Duty

In Nigeria, the execution of an aircraft or engine sale agreement will attract stamp duties at an ad valorem rate of 1.5%.

Capital Gains Tax

The gains realised from the sale will be subject to capital gains tax. Capital gains tax at the rate of 10% arises on gains accruing to domestic parties upon the sale of an aircraft or engine. This tax also arises from the sale of ownership interests in Nigerian companies for proceeds in excess of NGN100 million. A roll-over relief exists where the proceeds from the sale of the aircraft or engine are used to purchase a new aircraft or engine within 12 months before or after the sale.

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