Lagos: Falcon Aerospace Ltd., a private aviation operator, has expressed its approval of the enhanced implementation of the Cape Town Convention within Nigeria’s aviation sector, highlighting the increased protection it offers to aircraft financiers and lessors. The company’s Chief Executive Officer, Mr. Erika Achum, shared these insights in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, Mr. Achum emphasized the importance of the Cape Town Convention Practice Direction, which was signed in September 2024 by Nigeria’s Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN). He described this move as a pivotal advancement that has bolstered confidence in Nigeria’s aviation market, encouraging more financing and leasing engagements with Nigerian operators.
Mr. Achum noted that some lenders and lessors had previously shown a preference for foreign registration due to apprehensions regarding the enforcement of aircraft repossession rights within the country. He called for the establishment of clearer distinctions between private ownership and commercial charter operations, reformation of the temporary-import regime, and a more efficient, cost-effective domestic certification process.
Addressing concerns about revenue losses from foreign-registered aircraft, Mr. Achum clarified that the country of registration alone does not determine Nigeria’s revenue. He pointed to import duties, value-added tax on aircraft, regulatory certification and permit fees, and taxes on charter income as significant revenue channels for the Federal Government.
Mr. Achum also highlighted the challenges that foreign registration previously posed to local employment, as some foreign-registered aircraft required crews with licenses from the relevant foreign aviation authorities. However, he noted positive developments, as more Nigerian pilots and engineers are now obtaining foreign licenses alongside their Nigerian credentials, enabling them to work on foreign-registered aircraft while maintaining employment and training opportunities within Nigeria.
In addressing the regulatory environment, Mr. Achum argued that the private aviation sector is neither under-regulated nor under-taxed. He urged the Federal Government to support the industry’s growth while ensuring safety standards are upheld. He also cautioned against excessive regulation, emphasizing the importance of safety in maintaining a valid Nigeria Civil Aviation Authority (NCAA) Air Operator’s Certificate.
Mr. Achum affirmed Falcon Aerospace’s commitment to professionalizing Nigeria’s private aviation industry, highlighting the company’s dedication to maintaining safety management systems, undergoing maintenance oversight, ensuring crew licensing, and providing necessary training, all of which are audited before certification.