On Thursday, the Federal Government signed the Cape Town Convention (CTC) Practice Directions, which allows domestic airlines to dry lease aircraft.
The Chief Judge of the Federal High Court, Justice John Tsoho, signed the document during a Presidential Enabling Business Environment Council meeting, chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
According to Mr. Stanley Nkwocha, Senior Special Assistant to the Vice President on Media and Communications, the move will lower airline operating costs in Nigeria’s aviation sector. The statement, titled ‘Stakeholders jubilate as FG signs CTC practice direction,’ highlighted that the Cape Town Convention is now fully operational in Nigeria, reducing insurance costs for airlines, boosting investor confidence, and enabling aircraft dry leasing.
Previously, some local operators violated the Cape Town Convention, which oversees global aircraft leasing. As a result, the Aviation Working Group, led by Airbus and Boeing, threatened to blacklist Nigeria unless it enacted measures to prevent future breaches.
Vice President Shettima emphasized that President Bola Tinubu’s administration is committed to protecting and promoting the nation’s aviation industry, even if tough decisions are required.
