Nigeria Signs Cape Town Convention Practice Direction, Boosting Aviation Industry
The Federal Government has signed the Cape Town Convention Practice Direction, a move aimed at reducing the cost of airline operations in the Nigerian aviation sector. The signing of the document was announced on Thursday at a stakeholders’ meeting of the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice President Kashim Shettima.
The Cape Town Convention, which regulates aircraft leasing across the world, had been breached by some local operators in the past, leading to concerns that Nigeria could be blacklisted. The signing of the practice direction is expected to restore investors’ confidence in the nation’s aviation sector and enable domestic airline operators to dry lease aircraft.
The Vice President, who signed the document alongside Chief Judge of the Federal High Court, Justice John Tsoho, commended the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, for his efforts in addressing the issues affecting airline operators. Shettima assured airline operators that President Bola Tinubu’s administration is committed to promoting and preserving the Nigerian airline industry.
The signing of the document is expected to reduce the cost of insurance for airlines, facilitate growth and development of the industry, and enable investors to bring their aircraft into Nigeria. The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who was represented by the ministry’s Director of Human Resources, Dr Anastasia Gbem, said the signing of the document would reassure the international community that it is safe to invest in Nigeria.
The Chief Executive Officer of Air Peace Limited, Allen Onyema, thanked President Tinubu for enhancing a positive change in the aviation sector. He described the signing of the document as a “revolution” that would help improve the lives of Nigerians.
The signing of the Cape Town Convention Practice Direction is seen as a significant progress for Nigeria’s aviation sector and economy in general. The National Insurance Commission of Nigeria’s Chief Executive Officer, Mr Olusegun Omoseye, described the development as “unprecedented history made today” that would boost the Nigerian airlines and entire aviation industry.
The signing of the document is expected to have a positive impact on the business environment for airlines and other stakeholders in the industry.
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