FG signs Cape Town Treaty to enhance aircraft leasing

The Federal Government has officially signed the Cape Town Convention Practice Directions, which allows domestic airline operators to dry lease aircraft.

The Chief Judge of the Federal High Court, Justice John Tsoho, signed the Cape Town Convention Practice Direction during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice President Kashim Shettima, at the Presidential Villa, Abuja.

According to Senior Special Assistant to the Vice President on Media and Communications, Mr Stanley Nkwocha, the signing of this practice direction aims to “reduce the cost of airline operations in the Nigerian aviation sector.”

Nkwocha explained, “The Cape Town Convention becomes actively and fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the nation’s aviation sector, and enabling domestic airline operators to dry lease aircraft, among other benefits.”

Past breaches of the Cape Town Convention by local operators had led to warnings from the Aviation Working Group, co-chaired by Airbus and Boeing, about Nigeria being blacklisted until appropriate legal measures were implemented.

Following the signing, Vice President Shettima stated, “President Bola Tinubu’s administration is a pro-business government ready to take all necessary measures—painful as they might be—to protect, promote, and preserve the interests of the Nigerian nation and its airline industry.”

Shettima commended Justice Tsoho for his role in signing the Convention and praised the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, for addressing key issues affecting airline operators.

Edun remarked, “The Cape Town Convention will substantially reduce costs in the airline industry, facilitate growth, and address regulatory issues.”

The CEO of Air Peace, Allen Onyema, praised President Tinubu for his commitment to improving the aviation sector, calling the day “historic” for Nigeria.

Special Adviser to the President on PEBEC, Dr Jumoke Oduwole, noted that the signing would help reduce flight ticket costs and improve the business environment.

Minister of Aviation and Aerospace Development, Mr Festus Keyamo, represented by Dr. Anastasia Gbem, noted that the signing would boost Nigeria’s aviation industry and reassure international investors.

Chief Executive Officer of the National Insurance Commission of Nigeria, Mr. Olusegun Omoseye, also acknowledged the significance of the signing for Nigeria’s aviation sector and economy.