Minister of Aviation and Aerospace Development, Festus Keyamo, has reaffirmed Nigeria’s commitment to aviation financing reforms, regulatory improvements and compliance with the Cape Town Convention (CTC) as part of efforts to position the country as a preferred destination for aircraft leasing and financing.
Speaking at the Aviation Working Group (AWG) General Meeting in London, Keyamo told global financiers, aircraft lessors and aviation stakeholders that Nigeria’s ongoing reforms are aimed at improving investor confidence and expanding access to aircraft financing for local operators.
He thanked the Aviation Working Group and its leadership for supporting Nigeria’s efforts to strengthen compliance with the Cape Town Convention.
According to the minister, aviation growth in emerging markets such as Nigeria is often limited by access to affordable financing rather than passenger demand.
He noted that the Cape Town Convention was designed to reduce legal uncertainty, improve creditor confidence and lower financing costs globally.
Keyamo recalled that Nigeria was among the original signatories to the convention in 2001 and later domesticated it under the Civil Aviation Act.
He disclosed that over 80 per cent of aircraft operating in Nigeria are acquired through lease agreements, adding that aircraft whose lease periods expired were successfully deregistered and exported without disruptions.
Nigeria’s compliance score under the Cape Town Convention, he said, rose from 49 per cent to 70.5 per cent in September 2024 following new legal enforcement mechanisms introduced through a Practice Direction signed by the Chief Judge of the Federal High Court.
The operationalisation of the Irrevocable Deregistration and Export Request Authorization (IDERA) further increased the score to 75.5 per cent and led to Nigeria’s removal from the Aviation Working Group blacklist.
“These milestones did not happen by chance. They were driven by targeted regulatory reforms designed to demonstrate the Federal Government’s commitment to implementing the Cape Town Convention both in substance and in practice,” Keyamo said.
He added that the reforms have already improved investor confidence, citing recent aircraft dry lease transactions involving Nigerian airlines.
Despite progress, Keyamo acknowledged persistent challenges including customs procedures, temporary importation issues, foreign exchange volatility and inter-agency coordination concerns.
He assured stakeholders that the government is addressing the issues through institutional reforms, judicial capacity building and digitalisation initiatives within the Nigeria Civil Aviation Authority (NCAA).
