Nigeria has issued a new federal high court practice direction to enhance compliance with the Cape Town Convention. This step streamlines legal processes concerning the Cape Town Convention, improving the country’s global alignment. Specifically, the directive focuses on the Convention on International Interests in Mobile Equipment, particularly on aircraft equipment. Moreover, it ensures better adherence to international protocols, removing many obstacles that hindered aircraft leasing and financing.
Minister Festus Keyamo prioritized improving Nigeria’s compliance as part of his 5-Point Agenda to support local airlines. Since taking office, he addressed the low compliance rate, which caused the Aviation Working Group to bar Nigeria. This non-compliance previously created challenges for airlines leasing aircraft from major manufacturers like Boeing and Airbus.
Judicial delays meant creditors couldn’t receive the necessary relief within the 10-day declaration made under the Cape Town Convention. Legal impediments have been resolved, with this signing, thus improving access to aircraft financing. The directive, signed by the Chief Judge of the Federal High Court, ensures that judicial processes meet international standards. President Tinubu, Vice-President Shettima, and the Attorney General supported the move.
Furthermore, this new directive will significantly boost investor confidence and reduce the cost of aircraft acquisition for local airlines. As a result, Nigerian operators will expand their fleets and improve operational efficiency, fostering economic growth. The implementation of the Cape Town Convention will also allow Nigeria’s aviation sector to contribute more to the GDP and compete globally.
Minister Keyamo emphasized the importance of full compliance with the Convention for the local aviation industry’s growth. Nigerian courts must recognize international interests in aircraft equipment to facilitate efficient financing. This will help achieve the Cape Town Convention’s primary goal of supporting aircraft financing globally.
Keyamo expressed his gratitude to stakeholders who made the practice direction possible. He noted that this move will improve Nigeria’s global reputation and bring new growth to the aviation sector. Henceforth, Nigeria will compete favorably in the global aviation market, ensuring a bright future for the country’s airline industry.
