By Blessing Otobong-Gabriel
The Honourable Minister of Aviation & Aerospace Development, Festus Keyamo, has made significant strides in addressing the challenges faced by Nigeria’s aviation industry, particularly with regards to the Cape Town Convention.
Earlier in Abuja, the Nigeria government has also signed the Irrevocable De-Registration and Export Request Authorisation (IDERA) to enable airline operators access dry lease aircraft.
The signed IDERA which is expected to boost the ratings of Nigeria globally and open it to more financiers in the aviation sector.
Speaking on Wednesday at the signing of the document, Keyamo said the successful signing of the Cape Town Convention and the signing of IDERA would open the country to more opportunities and grow the aviation sector.
He informed, “Previous governments have ignored this part of our duty in aviation industry and I am sure that you have seen of late that in order to unlock the world of aircraft lessors and aircraft financiers across the world, we signed the practice direction guiding the court on how to interpret the Cape Town convention and the protocols.
The Minister hinted, “the Cape Town Convention was signed to address the judicial uncertainty surrounding disputes between lessors and lessees. Prior to its implementation, there was confusion about how courts should handle cases involving aircraft leases and financing.
Keyamo noted that this uncertainty made it challenging for creditors to repossess and export aircraft in the event of default.
The Convention provides clarity on the rights and interests of creditors and debtors, ensuring that creditors can quickly and efficiently repossess and export aircraft. It also establishes a centralized registry for international interests in aircraft, making it easier to determine priority and resolve disputes, he stated.
According to him, the key benefits of the Cape Town Convention was to reduced uncertainty by providing clear guidelines for courts to follow in disputes between lessors and lessees, Improved Creditor Protection to ensures creditors can repossess and export aircraft quickly and efficiently and to centralized Registry which allows for easy determination of priority and resolution of disputes.
He explained that by signing the Cape Town Convention, countries can create a more favorable environment for aircraft financing and leasing, which can lead to increased investment and growth in the aviation industry.
“This is a very important step and it would raise the scores of Nigeria in the world of lessors and financiers and certain negotiations around the world by our airline operators that are on hold due to our inability to sign IDERA will get approval because we have signed IDERA.”
Keyamo added that he would lead stakeholders to a world conference in Dublin Ireland next year to assess more aircraft.
Speaking, the Ag. Director General of the NCAA, Capt. Chris Najomo said IDERA would enable airlines have access to dry-lease aircraft and boost their operational capacity.
Najomo while referring to Cape Town Convention, said the aim of the Convention is to reduce the cost of raising finance for large, high value mobile assets which routinely cross borders.
He pointed out that the Cape Town Convention has been a game-changer for Nigeria’s aviation industry, saying by signing this international treaty, Nigeria has made it easier for registered owners to request an Irrevocable De-Registration and Export Request Authorisation (IDERA) for eligible aircraft.
“This means that owners now have more control over their assets and can efficiently manage their aircraft fleet”.
“In relation to registration and operation of aircraft in Nigeria, the main impact of the Convention is the ability of the registered owner to request an Irrevocable De-Registration and Export Request Authorisation (“‘IDERA”) over an eligible aircraft.
“Once an IDERA is recorded, the party that has been declared by the registered owner as the authorised party will be the only party with the right to de-register and export the aircraft”.
