Nigeria achieves 75% compliance with Cape Town pact

The Minister of Aviation and Aerospace Development, Festus Keyamo has disclosed that Nigeria has so far achieved 75 per cent compliance with the Cape Town Convention (CTC) to address issues of aircraft financing and dry lease. Keyamo stated this in Abuja on Tuesday at the Cape Town Convention – Africa Event, saying since its entry […]

The Minister of Aviation and Aerospace Development, Festus Keyamo has disclosed that Nigeria has so far achieved 75 per cent compliance with the Cape Town Convention (CTC) to address issues of aircraft financing and dry lease.

Keyamo stated this in Abuja on Tuesday at the Cape Town Convention – Africa Event, saying since its entry into force over two decades ago, the Cape Town Convention (CTC) has transformed the landscape of aircraft financing and leasing by creating a predictable, transparent, and enforceable legal regime that reduces credit risk and enhances access to capital. 

Daily Trust reports that according to the International Civil Aviation Organisation (ICAO), the primary aim of the Convention and the Protocol is to resolve the problem of obtaining certain and opposable rights to high-value aviation assets, namely airframes, aircraft engines and helicopters which, by their nature, have no fixed location. 

Keyamo said, “For Africa, where the cost of capital remains one of the most significant barriers to fleet expansion and maintenance, the CTC presents a beacon of opportunity that signals to investors and financiers that our legal systems are reliable, our markets are stable, and our governments are committed to best practices in aviation asset management and protection.

 

 

 

“Today, 28 African countries have ratified the Convention, reflecting a continental recognition that the CTC is not just a legal instrument, it is a catalyst for aviation growth, economic transformation, and connectivity across Africa,” he said

 

 

 

Speaking on the progress made in the country, he said “Nigeria’s aviation sector continues to evolve with an unshakable resolve to align with international standards. I am happy to share that Nigeria’s Cape Town Convention compliance score has risen from 70.5% to 75.5%, following the signing and operationalization of the Irrevocable Deregistration and Export Request Authorization (IDERA) procedure and Practice Direction.”

 

 

 

The aviation minister added that the improvement reflects the government’s commitment to implementing the Convention in both substance and practice.