After more than 20 years, the Nigerian government accepted and signed the Cape Town Convention (CTC) Practice Direction on Thursday, boosting the country’s aviation operations. Vice President Kashim Shettima presided over the signing of the pact in front of aviation stakeholders, including Allen Onyema, chairman of Air Peace.

The pact is intended to facilitate asset-based financing and leasing of aviation equipment, including aircraft.

The treaty, which went into effect more than 20 years ago, also helped to expand financing alternatives and lower costs, resulting in the desired economic gains.

BusinessDay reported from the Presidential Villa, where the agreement was signed, that Nigerian airline companies now have access to aircraft dry lease, while passengers will benefit from decreased flying costs.

The Cape Town Convention (CTC) Practice Direction has been described as a bold move by the government, as it will reduce the cost of doing business in the Nigerian aviation sector, lower the cost of insuring airlines, and provide domestic airline operators with access to dry lease aircraft, among other benefits. While speaking with BusinessDay over the phone, aviation consultant Chris Aligbe praised the development as “an award-winning move by the Tinubu administration.” “All we want now is for those who will implement the Convention to speed up the process of domesticating it.” Aligbe, who termed the signing as overdue, remembered that its failure resulted in aircraft lessors denying Nigerian operators access to aircraft dry leases.

The CTC practice instruction was signed by John Tsoho, Chief Judge of the Federal High Court, at a stakeholder meeting of the Presidential Enabling Business Environment Council (PEBEC) hosted by Vice President Kashim Shettima at the Presidential Villa in Abuja.

He stated: “The signing of the CTC Practice Direction will ensure the Cape Town Convention becomes fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the Nigerian aviation sector and reducing the cost of doing business in the nation’s aviation sector generally.”

Allen Onyema, chairman of Air Peace, praised the measure as a significant step by President Bola Tinubu’s administration to address some of the sector’s most pressing concerns over the years. Read also: Nigeria must improve rules to maximise the aviation industry potential – Mgbachi. “We must thank the president, the vice president, as well as Festus Keyamo, the minister of aviation for successfully pushing the signing of the convention to make it a reality.” Speaking after the signing of the CTC practice direction, Vice President Shettima said the administration of President Tinubu was a pro-business government that is ready “to take all the necessary measures – as painful as some might be – to protect, promote, project, and preserve the interest of the Nigerian nation,”

On his part, Edun, the finance minister, agreed to meet with airline operators and other stakeholders to finalise the agreements reached with the vice president. Onyema, speaking on behalf of Nigeria’s airline operators, thanked President Tinubu for promoting constructive reform in the aviation sector. He noted that since taking office, the president has implemented initiatives to better the lives of Nigerians. Jumoke Oduwole, special adviser to the president on the Presidential Enabling Business Environment Council (PEBEC) and Investment, stated that signing the contract would help to cut the cost of insurance as well as the cost of doing business in the aviation industry.