Nigeria Moves To Eliminate Judicial Impediments To Implementation Of Cape Town Convention

Nigeria, as a Party to the Convention on International Mobile Equipment (Convention) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the Protocol) which was adopted in Cape Town South Africa on November 16, 2001 and has been ratified and domesticated in the Civil Aviation Act 2006, as amended in the Civil Aviation Act 2022, has taken a step to eliminate judicial impediments in the implementation and compliance with the Convention.

The country yesterday became one of the few in the world to pioneer the issuance of Practice Directions by the Federal High Court which is vested with the constitutional jurisdiction on Aviation matters. The signing of the Practice Direction was presided over by the Vice-President of Nigeria, Senator Kashim Shettima at the meeting of the Presidential Council of  Presidential Enabling Business Environment Council (PEBEC) at the Presidential Villa, Abuja.

A statement signed by Tunde Moshood, SA, Media and Communications to the

Honourable Minister of Aviation and Aerospace Development says “the new Practice Directions issued by the Chief Judge of the Federal High Court will eliminate judicial impediments in the implementation and compliance with the Cape Town Convention” adding that “it is only by so doing that the primary objective of the CTC which is to facilitate the efficient financing and acquisition of aircraft objects by the recognition of the international interests created in the objects can be beneficial to airline operators in the country.”

Since assumption of office, one of the key points of the Minister of Aviation and Aerospace Development Festus Keyamo’s 5-Point Agenda has been the support for the growth and sustenance of local airline businesses whilst holding them to highest international standards.

In pursuit of this agenda, the Minister was confronted with the lingering problem of the low rate of Nigeria’s compliance with the Cape Town Convention – a Convention that regulates the dry-leasing of aircrafts by major aircraft manufacturers such as Boeing and Airbus and major leasors across the world who perceived Nigeria as a non-compliant country. This led to the blacklisting of Nigeria by the Aviation Working Group. The AWG CTC compliance index shows Nigeria’s substantial non-compliance with the CTC which is largely as a result of legal impediments in the country’ judicial process which have adverse impact on the implementation and compliance with terms of the Convention. Certain judicial cases have shown that speedy reliefs sought by the creditors were not granted within the 10 days declaration made by Nigeria under the Convention. The Minister, with the key support of Mr. President, the Vice-President and the Attorney-General of the Federation, then reached out to key institutions and offices in the judicial sector to make this possible, which resulted in the signing of the Practice Direction.

This singular move has revolutionized airline business in Nigeria as it will boost investors’ confidence and open the floodgate to Nigeria airline operators to have easy access to aircraft acquisition at much lower cost.  This will significantly enhance the growth of the aviation industry by creating more jobs and promoting the rapid economic development of the aviation industry. By so doing, Nigeria’s aviation industry which has huge global market, can favourably compete and increase its contribution to the GDP.

Nigeria has the obligation to ensure that its domestic laws and its courts and administrative bodies give full effect to the CTC and that the timelines and remedies set in the CTC are not varied at the discretion of the courts.

The Minister expressed “profound appreciation to all the stakeholders who have contributed immensely towards the actualization of this landmark issuance of the new Federal High Court Practice Directions which will not only clear the image and reputation of Nigeria in the global community, but usher in a new era for the airline business in Nigeria to grow and be well positioned to compete favourably in the global aviation market,” adds Moshood.