Nigeria Introduces New Federal High Court Practice Directions to Enhance Compliance with Cape Town Convention
Nigeria has joined a select group of nations by issuing new Practice Directions through the Federal High Court aimed at enhancing the country’s compliance with the Cape Town Convention on International Interests in Mobile Equipment, 2001, and its Protocol on Aircraft Equipment.
This significant development is expected to revolutionise Nigeria’s aviation industry by boosting investor confidence and facilitating aircraft acquisition at lower costs for local airlines.
The signing of the new Practice Directions was overseen by Vice-President Senator Kashim Shettima during a meeting of the Presidential Enabling Business Environment Council (PEBEC) on Thursday – September 12, 2024, at the Presidential Villa, Abuja.
The initiative is a key aspect of the Minister of Aviation and Aerospace Development, Festus Keyamo’s, 5-Point Agenda, which prioritises the growth and sustainability of local airline businesses, while ensuring adherence to the highest international standards.
In a statement through his Special Assistant on Media and Communications,Tunde Moshood, Minister Keyamo highlighted the critical need to address Nigeria’s historically low compliance rate with the Cape Town Convention.
The Convention, which governs the leasing of aircraft by manufacturers such as Boeing and Airbus, has seen Nigeria blacklisted by the Aviation Working Group (AWG) due to the country’s legal and judicial impediments.
The AWG’s Compliance Index revealed Nigeria’s substantial non-compliance with the Convention, particularly in cases where courts failed to grant speedy relief within the 10-day timeframe stipulated by the Convention.
Recognising the negative impact this had on the country’s aviation sector, Minister Keyamo, with the strong support of President Bola Ahmed Tinubu, Vice-President Shettima, and the Attorney-General of the Federation, engaged with judicial authorities to facilitate the issuance of the new Practice Directions.
These guidelines, issued by the Chief Judge of the Federal High Court, are expected to remove the legal barriers to compliance, offering much-needed clarity and efficiency in the judicial process concerning aviation matters.
The new directives will ensure that Nigeria’s obligations under the Cape Town Convention and its Protocol are fully met, particularly in terms of timelines and remedies that should not be varied at the discretion of the courts.
This will improve the perception of Nigeria in the global aviation community, thereby encouraging aircraft leasing companies to reconsider their stance towards Nigerian airlines.
The Minister emphasised that this development will not only restore Nigeria’s reputation but will also drive the rapid growth of the aviation industry, creating more jobs and contributing significantly to the country’s GDP.
The Practice Directions will pave the way for Nigerian airline operators to access aircraft financing more easily, which will, in turn, enhance the industry’s global competitiveness.
“Today marks a monumental day for the aviation sector in Nigeria. With the new Practice Directions in place, we are now poised to restore confidence in our airline industry and ensure our operators are well-positioned to thrive on the global stage,” said Keyamo.
Nigeria, a signatory to the Cape Town Convention since 2001, has incorporated the treaty into its domestic law through the Civil Aviation Act 2006, which was amended in 2022.
By ensuring full compliance with the Convention, Nigeria is set to unlock new opportunities for its aviation industry, further strengthening its role in international air travel and transportation.
The Minister expressed his appreciation to all stakeholders who contributed to the successful issuance of the new Practice Directions, which signal the dawn of a new era for Nigerian aviation.
