BY OLAPEJU OLUBI
In what stakeholders tagged a historic development for Nigeria’s aviation sector, the Federal High Court, on Thursday, issued a notable Practice Directions that will significantly bolster the country’s compliance with the Cape Town Convention—a global treaty that governs international interests in mobile equipment, particularly aircraft.
The feat, contained in a statement signed by Tunde Moshood, Special Assistant Media and Communications to the Minister of Aviation and Aerospace Development, Festus Keyamo, automatically catapults Nigeria into a select group of countries leading the way in creating judicial frameworks that support international aviation standards, transforming the industry and positioning the nation as a competitive force in the global market.
Moshood added that the signing of the Practice Directions was presided over by the Vice President, Senator Kashim Shettima, at a meeting of the Presidential Enabling Business Environment Council (PEBEC), held at the Presidential Villa, Abuja.
According to him, the key reform represents one of the crowning achievements of Keyamo, who has made strengthening Nigeria’s aviation sector a top priority of his five-point agenda since assuming office.
Prior to this latest feat, Nigeria had struggled with low compliance rates related to the Cape Town Convention—a crucial agreement that regulates the leasing of aircraft by global giants such as Boeing, Airbus, and other major aircraft leasing firms.
Due to judicial inefficiencies, Nigeria was often viewed as a non-compliant nation, leading to its blacklisting by the Aviation Working Group (AWG), a global body that monitors adherence to the Convention.
This blacklisting hindered Nigerian airlines’ access to international financing and cost-effective aircraft leasing options, which are critical for the growth and modernization of the industry.
The core issue lay in Nigeria’s judicial process, where creditors’ requests for timely relief were often delayed beyond the 10-day period mandated under the Cape Town Convention.
The statement emphasised that these delays severely impacted Nigeria’s ability to meet the international standards required by aircraft lessors and financiers.
The Minister, alongside key government leaders such as President Bola Tinubu, Vice President Kashim Shettima, and the Attorney-General of the Federation, recognised the urgent need for reform.
Together, they worked diligently with stakeholders in the judiciary to remove the legal obstacles that had long plagued the sector.
It added that the issuance of the new Federal High Court Practice Directions is the result of these concerted efforts.
It marks a significant step toward streamlining the judicial process, ensuring that Nigeria’s domestic legal framework aligns with the requirements of the Cape Town Convention.
This, in turn, will foster a more attractive environment for foreign investors and aviation lessors, providing Nigerian airlines with greater access to aircraft at more competitive costs”, the statement noted.
Moshood added that the new Practice Directions are expected to revolutionise the business of airline operations in Nigeria.
“By removing the judicial bottlenecks that previously hampered compliance with the Cape Town Convention, the Practice Directions will significantly boost investor confidence, opening the floodgates for Nigerian airline operators to access international aircraft leasing markets at much lower costs.
This will not only drive down the financial burden on local airlines but also set the stage for rapid expansion and modernization of fleets, thereby enhancing the overall competitiveness of the industry.
Furthermore, the economic ripple effect of this reform cannot be overstated. The new judicial framework is poised to create thousands of jobs, both directly and indirectly, as the aviation sector grows to accommodate increased business activity.
From pilots and cabin crew to engineers and ground staff, the airline industry will be a key driver of employment, contributing to Nigeria’s broader economic development goals.
With easier access to affordable aircraft, Nigerian airlines are now better equipped to expand their operations, both domestically and internationally. This growth will allow Nigeria’s aviation sector, which already boasts a significant market potential, to compete more effectively on the global stage.
The increased capacity and operational efficiency will also bolster the industry’s contribution to the nation’s GDP, establishing aviation as a major economic pillar in Nigeria’s development narrative.
As a signatory to the Convention on International Interests in Mobile Equipment (CIME) and its Protocol specific to Aircraft Equipment, adopted in Cape Town, South Africa, on November 16, 2001, Nigeria is obligated to ensure that its legal and administrative systems fully align with the Convention’s stipulations.
The Civil Aviation Act 2006, amended in 2022, domesticated the Convention, but its implementation had been hindered by judicial delays and procedural inefficiencies.
Today’s new Practice Directions signal a strong commitment to meeting these international obligations and ensuring that the remedies and timelines set forth in the Convention are adhered to without variation.
The primary objective of the Cape Town Convention is to facilitate the efficient financing and acquisition of aircraft by recognizing the international interests created in such objects. By adhering to these standards, Nigeria’s airline operators will benefit from a more streamlined process when acquiring or leasing aircraft, helping to reduce costs, improve fleet capacity, and ultimately provide better services to passengers.
In the wake of this historic achievement, Keyamo expressed his heartfelt gratitude to all the stakeholders who played an essential role in bringing this reform to fruition.
He acknowledged the unwavering support of President Tinubu, Vice President Shettima, and the Attorney-General of the Federation, along with key figures in the judiciary, for their collaboration and commitment to reshaping Nigeria’s aviation landscape.
“This landmark issuance of the new Federal High Court Practice Directions not only restores Nigeria’s image in the global aviation community but also paves the way for a new era of growth and opportunity for the airline business in Nigeria.
With these reforms, our airlines can now compete more favorably in the global market, and the entire aviation sector will thrive as a result,” the Minister said.
