The Federal Government has executed the Irrevocable De-Registration and Export Request Authorisation (IDERA), facilitating airline operators' access to dry lease aircraft.

This IDERA is anticipated to enhance Nigeria's global standing and attract more investors in the aviation sector. Previously, the minister noted that lessors and financiers had placed Nigeria on a blacklist due to perceptions of safety concerns regarding their business and aircraft.

During a signing ceremony in Abuja on Wednesday, the Minister of Aviation and Aerospace Development, Festus Keyamo, stated that the successful execution of the Cape Town Convention, along with the IDERA, would create new opportunities and foster growth within the aviation industry.

The Minister remarked, “Past administrations have overlooked this critical aspect of our responsibilities in the aviation sector. Recently, to engage with aircraft lessors and financiers worldwide, we established a practice direction to guide the courts on interpreting the Cape Town Convention and its protocols.

“This was necessary due to previous judicial uncertainties regarding how to handle cases requiring court intervention in disputes between lessors and lessees.

“In the past, resolving such disputes was challenging, often leading to prolonged timelines. This uncertainty adversely impacted our international reputation, resulting in Nigeria being deemed an unsafe environment for lessors and financiers to operate.”

“Thankfully, we have settled the judicial aspect by signing the practice direction and now we are signing the administrative aspect. So, lessors and lessees can either approach the court or the NCAA for their aircraft to be taken out of the country.

“This is a very important step, and it would raise the scores of Nigeria in the world of lessors and financiers, and certain negotiations around the world by our airline operators that are on hold due to our inability to sign IDERA will get approval because we have signed IDERA.”

Keyamo announced his intention to lead stakeholders to a global conference in Dublin, Ireland, next year to evaluate additional aircraft options. Additionally, Acting Director General of the NCAA, Capt. Chris Najomo, stated that IDERA would provide airlines with access to dry-lease aircraft, thereby enhancing their operational capabilities.

Najomo highlighted the significance of the Cape Town Convention, which is designed to lower the costs associated with financing large, high-value mobile assets that frequently cross international borders.

Regarding the registration and operation of aircraft in Nigeria, he noted that the Convention's primary benefit is that it allows the registered owner to request an Irrevocable De-Registration and Export Request Authorisation (IDERA) for an eligible aircraft. Once an IDERA is recorded, only the party designated by the registered owner as the authorized party will have the authority to de-register and export the aircraft.