The federal government on Thursday declared that it will put in place policies and processes that will ensure domestic Airlines in the country do not go extinct as was the case in the past with the advent of the Cape Town Convention.
Vice President, Senator Kashim Shettima gave the assurance at the Ministry of Aviation and Aerospace Development Conference on the Cape Town Convention and Aircraft Protocol Implementation in Abuja.
The Vice President, who was represented by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo said the years, the country has witnessed very high mortality rates of domestic Airlines in the in the last 40 years but said “it behooves on us now in office to find out why they went under and how we can ensure that it does not happen again. And the only way we can do that is by policy, policy policy policy policy policy frameworks to ensure that they survive. We can’t keep giving them money, then we must make the business conducive environment for them to survive.”
According to him, “one of the key elements that we recognize as a government is to ensure that we unlock the international markets on aircraft, and at the heart of that is to ensure the full compliance with the tenants of the Cape Town convention.”
While commending local operators for their resilient despite the excruciating business environment, he affirmed the Cape Town Convention has proven to be a transformative legal framework, harmonizing diverse global legal systems to foster predictability and stability for aviation stakeholders.
“For Nigeria, this Convention has not only enhanced our global standing but has also opened doors to increased investment and growth in aviation financing.
The recently issued Federal High Court Practice Directions and Advisory Circular mark significant milestones in our journey to align with international best practices. These initiatives have streamlined legal processes, enhanced jurisdictional clarity, and improved Nigeria’s compliance index, positioning our nation among global leaders in aviation governance.”
Mr. Keyamo on his part noted that
“when I came to office, and I saw this situation on the ground with our aviation sector, with our local operators. For the first time in the history of aviation sector, we put it as a focal point to support the growth and development
of our local operators having realize that the Nigerian state system is unique and different from others.”
On the way forward, challenges and opportunities, the Minister said while “we have made commendable progress, challenges such as ensuring consistent judicial interpretations and aligning local laws with international standards remain.
However, these challenges present opportunities for further innovation, collaboration, and capacity-building within our aviation sector.
This conference is a call to action for all stakeholders to engage, deliberate, and contribute to shaping a dynamic, sustainable, and globally competitive aviation industry in Nigeria.”
He said “As you are all aware, Nigeria’s aviation sector holds great potential for driving economic transformation, connecting communities, and promoting regional integration. The benefits of these efforts are already evident. Nigeria’s improved ranking on the Aviation Working Group’s Cape Town Convention Compliance Index is a testament to our progress.”
The Minister appealed to the Nigerian Custom Service and the Economic and Financial Crime Commission (EFCC)Minister urged to collaborate with the NCAA to ensure Nigeria is not find wanting in the implementation of the convention.
“We want to appeal to custom. We’re going to sit down with you at another forum. Please work closely with the NCAA because it is about the image of the country, it’s not about sectorial battles that has frustrated us in the past, the customs will seized the aircraft and said it’s about export. Come and fulfill this. Come and fulfill that for the three next three months, we’re not able to take out the aircraft when we have done our part. We want them to key into that convention, to also work within our time limit. We also appeal to the EFCC. We have one or two problems on the ground now with the EFCC.”
He added that”As we continue this transformative journey, I reiterate the Federal Government’s commitment to fostering a vibrant aviation ecosystem. I thank all participants for their contributions and urge us all to leverage this conference as a springboard for sustained progress.”
He outlined the objectives of the convention to include
streamlining aircraft transactions and facilitates assets based financing, simplifies the process of buying, selling, and leasing aircraft on an international scale.
On his part, the Director General of NCAA, Captain Chris Najomo said the Cape Town Convention aligns seamlessly with the Renewed Hope of President Bola Tinubu’ agenda, which has offer a pathway to modernizing the country aviation sector and ensuring its contribution to Nigeria’s prosperity.
“By protecting creditors’ rights and ensuring the enforceability of interests in mobile equipment, the Convention encourages investment and reduces the cost of financing.
Improves Legal consistency and International Registry: The Convention establishes a centralized electronic registry for registering interests, offering transparency and public notice. It also harmonizes the treatment of security interests across participating nations, further ensuring repossession and recovery rights for lessors and lenders in case of defaults.”
“Promotes Industry Standards: Aligns national regulations with global best practices, supporting the aviation industry’s growth and stability. fostering confidence among international investors and financiers.”
Stakeholders at the event commended the minister and the NCAA DG for their foresight.
