Nigeria signs IDERA advisory circular for aircraft leasing 

President Bola Ahmed Tinubu

Pres. Tinubu

The Nigerian government on Wednesday signed the Irrevocable Deregistration and Export Request Authorisation (IDERA) Advisory Circular for the recordation and cancellation of leased aircraft in the country.

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The Minister of Aviation and Aerospace Development, Festus Keyamo, signed the document alongside the acting Directorate General of Civil Aviation (DGCA), Capt. Chris Najomo, in Abuja, aiming to enable Nigerian airlines to access dry-lease aircraft to boost operational capacity.

Keyamo explained that the document is an international requirement that would enhance Nigeria’s standing among lessors and financiers.

He noted that, although IDERA allows aircraft lessors to apply administratively to the Nigeria Civil Aviation Authority (NCAA) for an aircraft to be taken out of the country, its official signing was crucial.

He added that the signing of the IDERA is sine qua non to the Practice Directive recently signed by the Nigerian government to interpret the Cape Town Convention.

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He said that judicial uncertainty had affected Nigeria’s rating by the international community, leading to the country being blacklisted as an unsafe destination for lessors to bring their aircraft.

Keyamo stated, “Having settled the judicial remedies through the practice directive, we now want to focus on the administrative route by which aircraft can be deregistered and exported out of Nigeria.”

He further explained that when an aircraft’s lease term ends and the aircraft needs to be taken out of Nigeria, the lessors must return to the NCAA for deregistration.

The minister added, “For lessors coming into the country who want to take their aircraft out when there is a dispute, there are two remedies. Judicial remedies are available to those seeking an injunction from the court. Lessors can also seek court permission to export their aircraft, with the court required to hear the request and grant permission within 10 days.”

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According to him, the Aviation Roundtable group had been patiently waiting for the signing of the IDERA. He noted that certain negotiations involving Nigerian airline operators had been on hold.

“Some airlines are trying to access aircraft on dry leases, but these have been delayed until the IDERA document is signed,” he said.

The DGCA, Captain Najomo, remarked that the Cape Town Convention and the associated Aircraft Protocol, which came into force in the United Kingdom on November 1, 2015, aim to reduce the cost of financing large, high-value mobile assets that routinely cross borders.

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He noted that the Convention’s primary impact on the registration and operation of aircraft in Nigeria is that the registered owner can request an IDERA over an eligible aircraft.

“Once an IDERA is recorded, only the party declared as the ‘authorised party’ by the registered owner will have the right to deregister and export the aircraft,” he explained.

Captain Najomo added that the smooth execution of this authorisation had been hindered by judicial rulings and uncooperative lessees. He commended the minister for taking decisive action to mitigate the consequences of these challenges.

The Agency DGCA also announced the issuance of an Advisory Circular: NCAA-AC-AWS001, dated October 16, 2024. This circular provides information and guidance on the civil aviation regulatory requirements and procedures for the recordation and cancellation of an IDERA, the deregistration of aircraft, and the export of aircraft and related objects located in Nigeria for the purpose of any export remedies.

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