Nigeria has signed the Cape Town Convention (CTC) Practice Directions in a move to reduce the cost of airline operations in the aviation sector.
The CTC Practice Direction was signed on Thursday by the Chief Judge of the Federal High Court, Justice John Tsoho, during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
With the signing of the CTC Practice Direction, the Cape Town Convention becomes actively and fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the nation’s aviation sector and enabling domestic airline operators to dry lease aircraft, among others.
Some local operators had, in the past, breached the Cape Town Convention which regulates aircraft leasing across the world, leading to the Aviation Working Group, co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would
guide against a repeat of such breach.
Speaking after the signing of the CTC Practice Direction, Vice President Shettima said the administration of President Bola Tinubu is a pro-business government that is ready ‘to take all the necessary measures – as painful as some might be – to protect, promote, protect and preserve the interest of the Nigerian nation,’ as well as preserve and promote the nation’s airlines industry.
He said, ‘It is a great day for the Nigerian nation. We had fruitful engagements and we were able to cross-pollinate ideas across all sectors and have come up with robust solutions to the challenges facing the Aviation industry.
‘I want to seize this opportunity to commend my Lord, Justice John Tsoho, the Chief Judge of the Federal High Court. Judges are, by nature, very conservative people. For him to frontally address the issue and sign the Cape Town Convention (CTC) Practice Directions, I think, is worthy of commendation.’
The Vice President also commended the Minister of Finance Wale
Edun, saying ‘All the issues agitating the minds of the airlines operators have been frontally addressed by the Minister, and on Monday they are meeting him to further consolidate all our gains.’
Commitment
VP Shettima assured airline operators in the country that President Tinubu will do everything to promote and preserve the Nigerian airline industry.
He said, ‘And, of course, my brother, Allen Ikechukwu Onyema, the Chairman and Chief Executive Officer of Air Peace, and Alhaji Dr. Abdulmunaf Yunusa Sarina, the Chairman of Azman Airlines, I want to assure you that the present administration headed by His Excellency, President Bola Ahmed Tinubu, is a pro-business government, is a pro-Nigeria government, and will take all necessary measures to protect, promote, project and preserve the interest of the Nigerian nation.
‘Air Peace has a fleet of 35 airlines and 26 more on order. Be rest assured that President Bola Ahmed Tinubu is keenly interested in the promotion and preservation of the Nigerian airline ind
ustry. I spoke with him about three days ago, and he was very much interested in the outcome of our deliberations today, and I will report back to him.’
Finance Minister, Edun promised to meet with airline operators and other stakeholders to perfect issues about agreements reached at the meeting with the Vice President.
Positive Change
Speaking on behalf of Airline Operators in Nigeria, the Chief Executive Officer of Air Pace Limited, Onyema expressed appreciation to President Tinubu for enhancing a positive change in the aviation sector.
He added that since assuming office, the President has introduced policies that will help improve the lives of Nigerians.
‘Today is a historic day for Nigeria. President Bola Ahmed Tinubu has once again demonstrated that he is not only a listening President but has gone a long way to engender the ease of doing business in the aviation industry more than any other since the creation of this country called Nigeria.
‘We the Airline Operators are so happy and we commend hi
m for what he has done today. Today is a revolution. President Bola Ahmed Tinubu has caused a positive revolution in the aviation industry by making sure that this practice direction concerning the Cape Town Convention and its application in Nigeria,’ Onyema stated.
Also, Special Adviser to the President of the Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr Jumoke Oduwole, noted that the signing of the document will help reduce the cost of insurance as well as reduce the cost of doing business in the aviation sector.
She said, ‘Nigerians have been seeing a high cost of flight tickets lately; there are several factors including foreign exchange and others but there are some regulatory and bureaucratic challenges but because the President is committed to addressing challenges one by one, this is one of the fruits of what he has done.
‘I just want to thank the President for his attention to ease of doing business and making sure that Nigeria is a progressively easier place to st
art and grow a business.’
Minister of Aviation and Aerospace Development, Festus Keyamo, who was represented by the Aviation Ministry’s Director of Human Resources, Dr Anastasia Gbem, said the signing of the document on actualizing the Cape Town Convention was in line with the Ministry’s goal of enhancing the capacity of local airlines’ business.
She added that the signing of the document will reassure the international community that it is safe to invest in Nigeria.
‘Investors can bring their aircraft into Nigeria and if there is any problem, such aircraft would be recovered within the 10-day period that Nigeria and the Cape Town Convention have provided. So it is an unprecedented history made today and it is a venture that will boost the Nigerian airlines and the entire aviation industry,’ said the Minister.
On his part, the Chief Executive Office of the National Insurance Commission of Nigeria, Olusegun Omoseye, said the signing of the document was significant progress for Nigeria’s aviation sector and
the economy in general.
Source: Voice of Nigeria