Festus Keyamo, Nigeria’s Aviation Minister, assured lessors and financiers that the government guarantees aircraft deregistration in four days. Additionally, he stressed that airlines must regain confidence in Nigeria’s regulatory framework to fully access dry leasing and remain competitive. Furthermore, he addressed ongoing efforts to resolve the insurance challenges airlines face.
Keyamo made these commitments during the recent Memorandum of Understanding (MoU) signing between Boeing and Nigeria. Although past violations of the Cape Town Convention caused difficulties, he reassured the industry that corrective steps are now being taken. He underscored the country’s determination to adhere to international standards and expedite aircraft deregistration in four days.
“As a personal guarantee, I will not tolerate the frustration of any agreement with lessors. I want to be clear that my office will prioritize the speedy repossession of aircraft in any case of default, whether through judicial channels or the NCAA. The Cape Town Convention specifies that deregistration should be completed within five days. However, I am personally ensuring that this process happens within four days.”
Moreover, Keyamo told lessors and financiers that Nigerian airlines must access dry leases to boost operational efficiency. He reassured investors their aircraft would be safe in Nigeria, with government support helping airlines thrive competitively.
He continued, “The government will give a guarantee that your aircraft are safe in Nigeria. We have the capacity to support any financing package, ensuring that airlines can run their operations smoothly without undue financial strain. I ask that you tell the lessors and financiers that Nigeria is ready and capable. We have the financial strength, and we want to see more of these leasing arrangements in place to empower our airlines.”
In addition, Keyamo noted that Nigerian airlines have struggled to access dry leases and instead rely on ACMI and wet leases. Despite these challenges, many airlines have shown they can meet their financial obligations. Thus, with improved access to dry leases, these airlines could significantly enhance their competitiveness.
“In a country where we hardly have access to dry leases, most of the businesses are ACMIs. They are on wet leases and yet many of them have shown the capacity to meet the obligations. If they have shown the capacity to meet the obligations with ACMIs, how much more when they have access to dry leases.” Keyamo entreated. As a result, ensuring compliance with the convention will unlock the dry lease market and make Nigeria more attractive to investors.
Furthermore, Keyamo emphasized that Nigeria has sufficient passenger traffic to support increased capacity. “We have the routes, and the passengers are there. We need to empower our airlines to serve this demand rather than let foreign carriers dominate the market,” he said.
On the issue of insurance, Keyamo acknowledged that international insurers often distrust local markets, preferring to place the risk abroad. He assured the industry that the government is actively working to resolve this obstacle, with positive progress expected soon
