The Federal Government of Nigeria has formally signed the Cape Town Convention (CTC) Practice Direction, aimed at reducing the cost of airline operations and boosting investor confidence in the nation’s aviation industry. The signing took place during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), presided over by Vice President Kashim Shettima at the Presidential Villa in Abuja.
Chief Judge of the Federal High Court, Justice John Tsoho, signed the CTC Practice Direction, making the Cape Town Convention fully operational in Nigeria. This move allows domestic airlines to dry lease aircraft, reduces insurance costs for operators, and provides a legal framework to safeguard the country from potential blacklisting by international aviation groups, such as the Aviation Working Group, co-chaired by Airbus and Boeing. Past breaches of the Convention had led to threats of Nigeria being blacklisted until proper measures were enacted.
Speaking after the signing, Vice President Shettima highlighted the administration’s pro-business stance, reaffirming President Bola Tinubu’s commitment to promoting and preserving the Nigerian airline industry. He commended Justice Tsoho for his proactive role and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for addressing the concerns of airline operators.
“This is a historic day for Nigeria,” Shettima stated, emphasizing that the government will take all necessary steps—no matter how challenging—to protect and promote the nation’s interests. He added that the signing represents a significant milestone in resolving the challenges facing Nigeria’s aviation sector.
Minister Edun reiterated the government’s commitment to meeting with airline operators to ensure that the benefits of the Cape Town Convention are fully realized. He stated that the Convention would substantially lower costs in the aviation industry and encourage economic growth by facilitating better access to financing for airlines.
The CEO of Air Peace, Allen Onyema, hailed the signing as a landmark event for the Nigerian aviation sector, expressing optimism about lower flight costs and improved service for passengers. Other stakeholders, including the National Insurance Commission and the Ministry of Aviation and Aerospace Development, also praised the move as a major boost to Nigeria’s aviation industry, reassuring international investors and enhancing the country’s competitiveness in the global market.
With this agreement, Nigeria’s aviation sector is poised for significant improvement, creating a more business-friendly environment and expanding opportunities for both local operators and international investors.
