The Federal Government has signed the Cape Town Convention (CTC) Practice Directions to reduce the cost of airline operations in the Nigerian aviation sector.
The CTC Practice Direction was signed by the Chief Judge of the Federal High Court, Justice John Tsoho, during a meeting of the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
 
With the signing, the CTC becomes 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 others.
 
Some local operators had, in the past, breached the CTC, which regulates aircraft leasing across the world, leading to the Aviation Working Group (AWG), co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would guard against a repeat of such breach.
 
Shettima described the President Bola Tinubu-led administration as a pro-business government that is ready “to take all the necessary measures – as painful as some might be – to protect, promote, project and preserve the interest of Nigeria,” as well as preserve and promote the country’s aviation industry.
 
He said, “It is a great day for Nigeria. We had fruitful engagements and we were able to cross-pollinate ideas across all sectors and have come up with robust solutions to the challenges facing the aviation industry.
 
“I seize this opportunity to commend my Lord, Justice Tsoho. Judges are, by nature, very conservative people. For him to frontally address the issue and sign the CTC Practice Directions, I think, is worthy of commendation.”
 
Shettima also commended the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, saying, “All the issues agitating the minds of the airline operators have been frontally addressed by the minister. On Monday, they are meeting him to further consolidate all our gains.
  
“Of course, my brothers, Allen Onyema, the Chairman and Chief Executive Officer of Air Peace; and Dr Abdulmunaf Sarina, the Chairman of Azman Airlines, I assure you that the present administration headed by Tinubu is a pro-business government, a pro-Nigeria government, and will take all necessary measures to protect, promote, project and preserve the interest of the Nigerian nation.”
 
On his part, Edun promised to meet with airline operators and other stakeholders to perfect issues about agreements reached at the meeting with the Vice President.
 
Speaking on behalf of Airline Operators in Nigeria (AON), Onyema expressed appreciation to Tinubu for enhancing a positive change in the aviation sector.
He added that since assuming office, the President has introduced policies to help improve the lives of Nigerians.
 
Special Adviser to the President on Presidential Enabling Business Environment Council (PEBEC) and Investment, Jumoke Oduwole, noted that the signing of the document would reduce the cost of insurance as well as that of doing business in the aviation sector.
 
Minister of Aviation and Aerospace Development, Festus Keyamo, represented by the Director of Human Resources, Anastasia Gbem, said the signing was in line with the ministry’s goal of enhancing the capacity of local airlines’ business.

She added that the document would reassure the international community of investment safety in Nigeria. Chief Executive Office of the National Insurance Commission of Nigeria, Olusegun Omoseye, said the signing of the document was significant progress for Nigeria’s aviation sector and the economy in general.