On Thursday, the federal government officially signed the Cape Town Convention (CTC) Practice Directions, aiming to reduce airline operational costs within Nigeria’s aviation sector. The agreement was signed by Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.
With the CTC Practice Directions now in effect, the Cape Town Convention is fully operational in Nigeria. This move is expected to lower insurance costs for airlines, boost investor confidence in the aviation sector, and facilitate domestic airlines’ ability to dry lease aircraft, among other advantages.A statement from Vice President Kashim Shettima’s spokesman, Stanley Nkwocha, highlighted that some local airline operators had previously violated the Cape Town Convention, which governs aircraft leasing worldwide. These breaches prompted the Aviation Working Group, co-chaired by Airbus and Boeing, to warn that Nigeria risked being blacklisted unless it enacted laws to prevent such violations.
Following the signing of the CTC Practice Directions, Vice President Shettima emphasized that President Bola Ahmed Tinubu’s administration is committed to being pro-business. He affirmed that the government is prepared to take all necessary measures, even those that may be challenging, to protect, promote, and advance the interests of the Nigerian aviation sector and its operators.During the signing of the Cape Town Convention (CTC) Practice Directions, Vice President Kashim Shettima hailed the move as a landmark moment for Nigeria’s aviation industry, stating that it represents a significant step in addressing challenges in the sector. He praised Justice John Tsoho, Chief Judge of the Federal High Court, for his proactive stance, noting that Tsoho’s willingness to sign the CTC Practice Directions was remarkable given the traditionally conservative nature of judges.
Shettima also acknowledged the contributions of the Minister of Finance, Wale Edun, commending him for addressing issues related to airline operators and promising further discussions to solidify gains. The Vice President assured key airline industry players, including Air Peace CEO Allen Onyema and Azman Airlines Chairman Abdulmunaf Sarina, that the Tinubu administration is dedicated to promoting and preserving the Nigerian airline industry.
Finance Minister Wale Edun reinforced this message, highlighting that the signed Practice Directions will significantly reduce operational costs for airlines, improve the business environment, and lower various charges. He added that further discussions would take place with stakeholders to address outstanding concerns, including customs charges.
Air Peace CEO Allen Onyema expressed gratitude to President Bola Tinubu for his pro-business policies and efforts to revolutionize the aviation sector. He described the signing of the CTC Practice Directions as a “historic day” and a pivotal moment for the industry.
Special Adviser to the President on PEBEC, Dr. Jumoke Oduwole, emphasized that the document’s signing will reduce insurance and operational costs, reflecting President Tinubu’s commitment to improving the business environment.
The Minister of Aviation, Festus Keyamo, represented by Dr. Anastasia Gbem, stated that the signing aligns with the ministry’s goals of boosting local airline capacity and restoring investor confidence. Additionally, National Insurance Commission CEO, Olusegun Omoseye, noted that this development is a significant step forward for both the aviation sector and Nigeria’s economy.
