The federal government has implemented initiatives to support financially challenged indigenous airlines, emphasizing the need for sustainable policies to ensure their continued operation.
During the Ministry of Aviation and Aerospace Development's Conference on Cape Town Convention and Aircraft Protocol Implementation in Abuja, Vice President Kashim Shettima, represented by Minister Festus Keyamo, stressed the importance of supportive regulatory frameworks for the viability of domestic carriers.
Shettima observed that, prior to the implementation of the Cape Town Convention—a protocol facilitating aircraft leasing and acquisition—many Nigerian airlines faced imminent collapse.
He expressed concern over the high rate of domestic airline closures over the past four decades, which has resulted in many carriers ceasing operations.
The Vice President reassured stakeholders of the government's dedication to fostering a favorable environment for the growth and sustainability of the aviation industry.
He stated, “It is our responsibility now to investigate the reasons behind their failures and to implement measures that will prevent recurrence. The solution lies in establishing robust policy frameworks that ensure their survival. We cannot continue to provide financial assistance without creating a conducive business environment for their success.
“One of the critical aspects we recognize as a government is the need to access international aircraft markets, which fundamentally requires full adherence to the principles of the Cape Town Convention.”
While praising local operators for their perseverance in a challenging business landscape, he affirmed that the Cape Town Convention has emerged as a transformative legal framework, aligning various global legal systems to promote predictability and stability for aviation stakeholders.
“For Nigeria, this Convention has not only improved our international reputation but has also facilitated increased investment and growth in aviation finance.
The recent issuance of the Federal High Court Practice Directions and Advisory Circular represents a pivotal advancement in our efforts to align with global best practices. These measures have optimized legal procedures, clarified jurisdictional boundaries, and enhanced Nigeria’s compliance metrics, thereby positioning our country as a leader in aviation governance on the international stage.
Keyamo remarked, “Upon assuming office, I was confronted with the challenges facing our aviation sector and local operators. For the first time in the history of this industry, we have prioritized the support for the growth and development of our local operators, recognizing that the Nigerian state system is distinct and requires tailored approaches.”
Looking ahead, the minister acknowledged that while we have achieved notable progress, we still face challenges such as ensuring consistent judicial interpretations and harmonizing local laws with international standards.
“Nevertheless, these challenges also offer opportunities for further innovation, collaboration, and capacity-building within our aviation sector.
“This conference serves as a call to action for all stakeholders to engage, discuss, and contribute to the development of a dynamic, sustainable, and globally competitive aviation industry in Nigeria.”
The Minister urged the Nigerian Customs Service and the Economic and Financial Crimes Commission (EFCC) to work in partnership with the NCAA to ensure Nigeria meets its obligations under the convention.
“We appeal to Customs to explore how they can assist in achieving this goal. We will convene with you in another forum; please collaborate closely with the NCAA, as this is about the nation’s reputation, not merely sectoral disputes that have hindered us in the past. Customs should not seize aircraft under the pretext of export issues.”
The owner will be required to meet certain conditions. For the next three months, we will be unable to remove the aircraft despite having completed our obligations. We expect them to adhere to the convention and operate within our timeline. Additionally, we appeal to the EFCC, as we are currently facing one or two issues with them.
He further stated, “As we advance on this transformative path, I reaffirm the Federal Government’s dedication to cultivating a dynamic aviation environment. I appreciate all participants for their input and encourage everyone to utilize this conference as a foundation for ongoing development.”
Captain Chris Najomo, the Director General of NCAA, remarked that the Cape Town Convention perfectly aligns with President Bola Tinubu’s Renewed Hope agenda, providing a framework for modernizing Nigeria's aviation sector and enhancing its role in the nation's prosperity.
He noted, “As you may know, Nigeria’s aviation sector possesses significant potential for driving economic change, connecting communities, and fostering regional integration. The advantages of these initiatives are already becoming apparent. Nigeria’s improved position on the Aviation Working Group’s Cape Town Convention Compliance Index reflects our advancements.”
He highlighted the convention's goals, which include streamlining aircraft transactions, facilitating asset-based financing, and simplifying the international processes of buying, selling, and leasing aircraft.
The Convention promotes investment and lowers financing costs by safeguarding creditors' rights and ensuring that interests in mobile equipment are enforceable.
Additionally, it enhances legal uniformity and establishes an International Registry: The Convention creates a centralized electronic platform for the registration of interests, providing transparency and public awareness. It also standardizes the treatment of security interests among participating countries, thereby reinforcing the repossession and recovery rights of lessors and lenders in the event of defaults.
He observed that this harmonizes national regulations with international best practices, thus promoting growth and stability within the aviation sector and cultivating confidence among global investors and financiers.
Attendees commended the Minister and the NCAA Director General for their forward-thinking strategies.