In a historic move to reduce the cost of airline operations within Nigeria's aviation sector, the Federal Government has signed the Cape Town Convention (CTC) Practice Directions.
The signing, conducted by Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, took place on Thursday during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
This development is expected to significantly enhance the operational efficiency of airlines in the country.
With the signing of the CTC Practice Direction, 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 others.
Some local operators had, in the past, breached the Cape Town Convention which regulates aircraft leasing across the world, leading to the Aviation Working Group, co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would guide against a repeat of such breach.
Speaking after the signing of the CTC Practice Direction, Vice President Shettima in a statement by his spokesman, Stanley Nkwocha said the administration of President Bola Ahmed Tinubu is a pro-business government that is ready “to take all the necessary measures – as painful as some might be – to protect, promote, protect and preserve the interest of the Nigerian nation,” as well as preserve and promote the nation’s airlines industry.
He said, “It is a great day for the Nigerian nation. 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.