Nigeria’s stronger implementation of the Cape Town Convention is improving confidence among aircraft financiers and lessors, according to Falcon Aerospace Ltd., a private aviation operator.
The company’s Chief Executive Officer, Erika Achum, said the development was helping to address long-standing concerns over the protection of aircraft assets and repossession rights in the Nigerian market.
Speaking in Lagos, Achum described the Cape Town Convention Practice Direction signed in September 2024 by the Minister of Aviation and Aerospace Development, Festus Keyamo, as an important step towards strengthening the country’s aviation financing framework.
He said greater certainty around the enforcement of creditors’ rights had encouraged more financing and leasing activity involving Nigerian operators. Previously, concerns about aircraft repossession and enforcement had led some lenders and lessors to favour foreign registration for aircraft operated in Nigeria.
Achum noted that aircraft registered outside Nigeria, including on the US N-registry and in jurisdictions such as Aruba, San Marino and the Isle of Man, were often linked to financing, insurance and certification considerations rather than simply regulatory preferences.
He called for further reforms to make the private aviation market more attractive, including clearer rules distinguishing privately owned aircraft from commercial charter operations, changes to the temporary importation regime and a faster, more cost-effective domestic certification process.
Addressing concerns that foreign-registered aircraft could reduce government revenue, Achum said the nationality of an aircraft’s registration was not the sole determinant of the revenue generated from aviation activities.
He pointed to import duties and VAT on aircraft, regulatory certification and permit fees, as well as taxes on charter income, as some of the channels through which the government earns revenue from the sector.
Foreign registration had also presented challenges for local employment in the past, particularly where aircraft owners required crew members to hold licences issued by the aviation authority of the aircraft’s country of registration. Achum, however, said more Nigerian pilots and engineers were now obtaining foreign licences alongside their Nigerian credentials, allowing them to work on foreign-registered aircraft while continuing to build their careers in Nigeria.
He also rejected suggestions that the private aviation sector was either under-regulated or under-taxed, arguing that the industry already operates within established safety and regulatory requirements.
Achum urged the government to support the expansion of private aviation without compromising safety standards, while cautioning against regulatory measures that could unnecessarily constrain the sector.
“Safety is fundamental to holding a valid Nigeria Civil Aviation Authority (NCAA) Air Operator’s Certificate,” he said, noting that operators are required to maintain safety management systems, comply with maintenance oversight requirements, ensure crew licensing and provide training, with these requirements subject to regulatory audits before certification.
Falcon Aerospace, he added, remained committed to supporting the professionalisation and development of Nigeria’s private aviation industry.
