By Cross Udo, Abuja
The Federal Government signed the Cape Town Convention (CTC) Practice Directions yesterday.
The CTC aims to reduce the cost of airline operations in the Nigerian aviation 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.
With the signing of the CTC Practice Direction, the Cape Town Convention becomes actively and fully operational in Nigeria. This will, among other things, reduce the cost of insurance for airlines, restore investors’ confidence in the nation’s aviation sector, and enable domestic airline operators to dry lease aircraft.
Some local operators had, in the past, breached the Cape Town Convention, which regulates aircraft leasing across the world, leading to the Aviation Working Group, co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would guide against a repeat of such breach.
*Tinubu keen on promoting Nigeria’s airline industry – Shettima
Speaking after the signing of the CTC Practice Direction, Vice President Shettima said President Bola Tinubu’s administration is a pro-business government ready “to take all the necessary measures—as painful as some might be—to protect, promote, protect and preserve the interest of the Nigerian nation” and preserve and promote the nation’s airlines industry.
He said, “It is an excellent day for the Nigerian nation. We had fruitful engagements, and we were able to cross-pollinate ideas across all sectors. We have developed robust solutions to the Aviation industry’s challenges.
“I want to seize this opportunity to commend my Lord, Justice John Tsoho, the Chief Judge of the Federal High Court. Judges are, by nature, very conservative people. For him to frontally address the issue and sign the Cape Town Convention (CTC) Practice Directions is worthy of commendation.”
The VP also commended the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, saying, “All the issues agitating the minds of the airline operators have been frontally addressed by the Minister, and on Monday, they are meeting him to consolidate all our gains further.”
He assured airline operators in the country that President Tinubu would do everything to promote and preserve the Nigerian airline industry.
He said, “And, of course, my brother, Allen Ikechukwu Onyema, the Chairman and Chief Executive Officer of Air Peace, and Alhaji Dr Abdulmunaf Yunusa Sarina, the Chairman of Azman Airlines, I want to assure you that the present administration headed by His Excellency, President Bola Ahmed Tinubu, is a pro-business government, is a pro-Nigeria government, and will take all necessary measures to protect, promote, project and preserve the interest of the Nigerian nation.
“Air Peace has a fleet of 35 airlines and 26 more on order. President Bola Ahmed Tinubu is interested in promoting and preserving the Nigerian airline industry. I spoke with him about three days ago, and he was very much interested in the outcome of our deliberations today, and I will report back to him.”
On his part, the Finance Minister, Mr Wale Edun, promised to meet with airline operators and other stakeholders to perfect issues about agreements reached at the meeting with the Vice President.
He said, “My Lord, the Federal High Court CJ called it action to revolutionise the airline industry. PEBEC is all about improving the business environment and reducing cost, and what has been signed here is an action that will substantially reduce cost in the airline industry, facilitate growth and development of that industry, and include further action that, I’m sure, would be taken in that direction once I meet with the airline industry and also have Customs present to discuss some charges which they want to be lowered, and which they believe by law should have been implemented at lower levels.
“So, we’ll discuss that on Monday; that will be a further step in the direction of improving the business environment for airlines, and, of course, it is all about a strategy that already has produced a growing economy, lower inflation, a relatively stable exchange rate and increased foreign reserves, positive balance of trade.”
Speaking on behalf of Airline Operators in Nigeria, the Chief Executive Officer of Air Peace Limited, Mr Allen Onyema, expressed appreciation to President Tinubu for promoting positive change in the aviation sector.
He added that since assuming office, the President has introduced policies that will help improve the lives of Nigerians.
“Today is a historic day for Nigeria. President Bola Tinubu has once again demonstrated that he is a listening president and has gone a long way to engender ease in doing business in the aviation industry more than any other since the creation of Nigeria.
“We, the Airline Operators, are so happy, and we commend him for what he has done today. Today is a revolution. President Bola Ahmed Tinubu has caused a positive revolution in the aviation industry by ensuring that this practice direction concerning the Cape Town Convention and its application in Nigeria,” Onyema stated.
Also, Special Adviser to the President of the Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr Jumoke Oduwole, noted that signing the document would help reduce the cost of insurance and the cost of doing business in the aviation sector.
She said, “Nigerians have been seeing a high cost of flight tickets lately. There are several factors, including foreign exchange and others, but there are also some regulatory and bureaucratic challenges. Because the President is committed to addressing challenges individually, this is one of the fruits of what he has done.
“I just want to thank the President for his attention to ease of doing business and ensuring that Nigeria is a progressively easier place to start and grow a business.”
Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who was represented by the Aviation Ministry’s Director of Human Resources, Dr Anastasia Gbem, said the signing of the document on actualising the Cape Town Convention was in line with the Ministry’s goal of enhancing the capacity of local airlines’ business.
She added that signing the document would reassure the international community that it was safe to invest in Nigeria.
“Investors can bring their aircraft into Nigeria, and if there is any problem, such aircraft will be recovered within the 10-day period that Nigeria and the Cape Town Convention have provided. So it is an unprecedented history made today and a venture that will boost the Nigerian airlines and the entire aviation industry,” said the Minister.
On his part, the Chief Executive Office of the National Insurance Commission of Nigeria, Mr Olusegun Omoseye, said signing the document was significant progress for Nigeria’s aviation sector and the economy in general.
