Nigeria Aligns with Capetown Convention on Aircraft Leasing

 

Federal High Court Issues New Practice Directions for Aircraft Financing

“Certain judicial cases have shown that speedy reliefs sought by the creditors were not granted within the 10 days declaration made...”

Nigeria makes history by introducing Practice Directions for the Federal High Court, enhancing its compliance with the Cape Town Convention and boosting the aviation sector.

Nigeria broke new ground on Thursday, becoming a trailblazer among nations by launching Practice Directions for the Federal High Court, the country's highest authority on aviation law, marking a significant milestone in its aviation history.

At a significant event held at the Presidential Villa in Abuja, Vice-President Kashim Shettima presided over the signing of the Practice Directions during a meeting of the Presidential Enabling Business Environment Council (PEBEC). This marks a major milestone in Nigeria's efforts to enhance its aviation sector.

Minister of Aviation and Aerospace Development, Festus Keyamo, has made it a top priority to promote and sustain local airline businesses while ensuring they meet global standards, as outlined in his five-point agenda since taking office, according to a press release issued by his Special Adviser on Media and Communications, Tunde Moshood.

The Federal Republic of Nigeria achieved a landmark milestone on Thursday, becoming one of the select few nations globally to introduce Practice Directions for the Federal High Court, which exercises constitutional authority over aviation-related matters.

The historic signing ceremony was officiated by Vice-President Kashim Shettima during a meeting of the Presidential Enabling Business Environment Council (PEBEC) at the Presidential Villa in Abuja, marking a significant development in Nigeria's efforts to enhance its aviation sector.

Minister of Aviation and Aerospace Development, Festus Keyamo, has prioritized the development and maintenance of domestic airlines, ensuring they meet rigorous international standards, as a key aspect of his five-point agenda since taking office, as stated in a press release by his Special Adviser on Media and Communications, Tunde Moshood.

In advancing his agenda, Minister Festus Keyamo faced a significant challenge: Nigeria's limited adherence to the Cape Town Convention, a global treaty governing aircraft dry-leasing. This perception of non-compliance by major aircraft manufacturers like Boeing and Airbus, as well as leading lessors worldwide, hindered Nigeria's progress in the aviation sector.

As a result, Nigeria was added to the blacklist by the Aviation Working Group, according to Moshood, who further explained that this designation was a consequence of the country's poor compliance record with the Cape Town Convention.

“The AWG CTC compliance index shows Nigeria's substantial non-compliance, which is largely as a result of legal impediments in the country' judicial process which have adverse impact on the implementation and compliance with terms of the Convention.

“Certain judicial cases have shown that speedy reliefs sought by the creditors were not granted within the 10 days declaration made by Nigeria under the Convention.

 The minister, with the key support of President Bola Tinubu, the Vice-President and the Attorney-General of the Federation, then reached out to key institutions and offices in the judicial sector to make this possible, which resulted in the signing of the Practice Directions on Thursday.”

The newly issued Practice Directions by the Chief Judge of the Federal High Court aim to remove judicial obstacles and facilitate seamless implementation and compliance with the Cape Town Convention, thereby enhancing Nigeria's adherence to international aviation standards.

“This singular move has revolutionised the airline business in Nigeria as it will boost investors' confidence and open the floodgates to Nigeria air operators to have easy access to aircraft acquisition at much lower cost,” Moshood noted.

“This will significantly enhance the growth of the aviation industry by creating more jobs and promoting the rapid economic development of the aviation industry.

“By so doing, the Nigeria aviation industry, which has a huge global market, can favourably compete and increase its contribution to the GDP.”

As a signatory to the Cape Town Convention and Protocol, and having ratified and incorporated them into the Civil Aviation Act 2006 (amended in 2022), Nigeria is obligated to ensure that its national laws, courts, and administrative bodies fully enforce the Convention's provisions, without modifying the stipulated timelines and remedies. This means that Nigerian courts must align their decisions with the Convention's requirements, without exercising discretion to alter them.

“It is only by so doing that the primary objective of the CTC which is to facilitate the efficient financing and acquisition of aircraft objects by the recognition of the international interests created in the objects can be beneficial to airline operators in the country,” Moshood stated.

“The Honourable Minister would like to seize this moment to express profound appreciation to all the stakeholders who have contributed immensely towards the actualization of this landmark issuance of the new Federal High Court Practice Directions which will not only clear the image and reputation of Nigeria in the global community, but usher in a new era for the airline business in Nigeria to grow and be well positioned to compete favourably in the global aviation market.”