The acting Director General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has promised that the agency will ensure the full implementation of the Cape Town Convention (CTC) to enable Nigerian airlines enjoy dry lease of aircraft at cheaper and longer term.
Najomo said when the Cape Town Convention agreement and the Aircraft Protocol are implemented, they would boost the image of the aviation industry in Nigeria and also align it with global best practices.
Najomo gave the assurance during a one-day conference with the theme: ‘Conference on Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment’, held in Abuja at the weekend.
The Convention, signed in November 2001 in Cape Town, South Africa, enables airlines in countries that are signatory to it to dry lease aircraft, which allows long term use of the leased equipment and allows the airline to operate the aircraft with its crew and also maintain it.
CTC also facilitates airlines to access long-term credit facilities at single digit interest rate from international financiers.
Najomo, at the conference, said that CTC offers immense opportunities in enhancing aviation financing, safeguarding creditor rights, and fostering a more predictable and sustainable legal environment for the country’s industry.
He said: “The theme of this conference underscores the importance of the Cape Town Convention and its Aircraft Protocol as essential instruments for promoting growth, stability, and resilience in the aviation industry.”
The acting Director General commended the vision of President Bola Tinubu and the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, for their visionary leadership and steadfast commitment to the growth of the sector, adding that Tinubu’s Renewed Hope Agenda prioritises economic development, innovation, and global competitiveness.
Najomo said: “The Cape Town Convention aligns seamlessly with this agenda, offering a pathway to modernising our aviation sector and ensuring its contribution to Nigeria’s prosperity. 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.”
Outlining the key objectives of the Cape Town Convention, the Director General said: “The Convention will streamline aircraft transactions and facilitate asset-based financing: simplifies the process of buying, selling, and leasing aircraft on an international scale. By protecting creditors’ rights and ensuring the enforceability of interests in mobile equipment, the Convention encourages investment and reduces the cost of financing.
“It improves legal consistency and international registry. The Convention establishes a centralised electronic registry for registering interests, offering transparency and public notice. It also harmonises the treatment of security interests across participating nations, further ensuring repossession and recovery rights for lessors and lenders in case of defaults.”
Chinedu Eze
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