The Federal Government has taken a major step to enhance the Nigerian aviation industry by signing the Cape Town Convention (CTC) Practice Direction. This move, aimed at reducing the cost of doing business, insuring airlines, and enabling domestic operators to dry lease aircraft, is expected to provide a significant boost to the sector.
The CTC Practice Direction was signed by the Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, during a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC), chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.
The implementation of the CTC Practice Direction will make the Cape Town Convention fully operational in Nigeria, which is anticipated to lower insurance costs for airlines and restore investor confidence in the Nigerian aviation industry. By streamlining business operations and reducing financial burdens, the new directive is seen as a major advancement in fostering growth within the sector.
The initiative is also expected to enhance leasing opportunities for domestic airline operators, allowing them to access aircraft through dry leasing arrangements, which could significantly expand their operational capacities. This development aligns with the Federal Government’s broader commitment to improving the ease of doing business across critical sectors of the economy, particularly aviation.
By fully implementing the Cape Town Convention, Nigeria hopes to solidify its standing as a more attractive destination for investment in aviation, while providing local airlines with the tools needed to compete in the global market.
