Nigeria Introduces New Court Guidelines to Boost Compliance

Last Thursday, Nigeria introduced new guidelines for its Federal High Court to enhance compliance with the Cape Town Convention and its associated Protocol on International Interests in Mobile Equipment, specifically concerning aircraft. The new Practice Directions were signed at a ceremony led by Nigeria’s Vice-President, Senator Kashim Shettima, during a meeting of the Presidential Enabling Business Environment Council (PEBEC) held at the Presidential Villa in Abuja.

In a statement on his X account, Aviation and Aerospace Development Minister Festus Keyamo emphasized that one of the top priorities in his 5-Point Agenda since taking office is to support the growth of domestic airlines while ensuring they maintain global standards.

As part of this initiative, the Minister had to address Nigeria’s low compliance rate with the Cape Town Convention, a critical international framework governing aircraft dry-leasing agreements with manufacturers like Boeing and Airbus. Nigeria’s perceived lack of compliance had led to its blacklisting by the Aviation Working Group (AWG), which monitors adherence to the Convention. According to the AWG, Nigeria’s legal framework posed significant obstacles, particularly in offering timely relief to creditors seeking urgent remedies, sometimes failing to meet the 10-day response time Nigeria committed to under the Convention.

Minister Keyamo, with the full backing of the President, Vice-President, and Attorney-General, collaborated with judicial bodies to remove these legal obstacles. This effort culminated in the signing of the new Practice Directions by the Chief Judge of the Federal High Court.

These new guidelines are expected to boost investor confidence by streamlining the process for Nigerian airlines to acquire aircraft at more competitive rates. Minister Keyamo highlighted that this move will greatly accelerate the aviation industry’s growth, create jobs, and contribute to economic development, positioning Nigeria’s aviation sector to compete more effectively on the global stage.

Nigeria ratified the Cape Town Convention and its Protocol, originally adopted in Cape Town, South Africa, on November 16, 2001. The Convention was incorporated into Nigerian law through the Civil Aviation Act of 2006, with further amendments made in 2022. This obligates the country to ensure its legal framework complies with the Convention’s provisions, including adhering to the timelines and remedies it sets out.

The Cape Town Convention requires aircraft deregistration and export requests to be processed within five days. However, Minister Keyamo has committed to reducing this timeframe to just four days for leased aircraft in default. The Convention, developed by UNIDROIT and the International Civil Aviation Organization (ICAO), is designed to support asset-based financing and leasing of aircraft, with economic benefits largely dependent on a country’s declarations and adherence to the Convention’s terms.

Following Nigeria’s removal from the Aviation Working Group’s compliance list, Minister Keyamo has launched a vigorous campaign to revitalize the aviation sector. As part of these efforts, earlier this year, the Minister visited Airbus in France. More recently, on August 29, 2024, during a visit to Boeing’s Charleston, South Carolina facility, he signed a Memorandum of Understanding (MOU) aimed at further developing Nigeria’s civil aviation sector.

• Author
• Recent Posts

Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

Latest posts by Victor Shalton (see all)

• TAAG Angola Airlines Takes Delivery of Its First Airbus A220-300 - September 24, 2024
• Nigeria Introduces New Court Guidelines to Boost Compliance - September 18, 2024
• Air Sénégal Settles Debt With Carlyle Aviation - September 11, 2024