The Aviation Working Group (AWG) has raised Nigeria’s Cape Town Convention (CTC) compliance index score from 49% to 70.5%. This upgrade means that Nigeria is now viewed as a secure destination for aircraft leasing by the AWG.
The AWG, a non-profit organization composed of major aviation manufacturers, leasing firms, and financial institutions, helps shape policies and regulations for international aviation financing and leasing.
In a letter to Festus Keyamo, the Minister of Aviation and Aerospace Development, AWG Secretary-General Jeffrey Wool expressed gratitude for the efforts surrounding the recent Practice Direction, which led to the significant score increase.
The federal government signed the CTC practice direction on September 12, aimed at enhancing the country’s aviation sector. This was formalized by John Tsoho, Chief Judge of the Federal High Court, during a meeting of the Presidential Enabling Business Environment Council (PEBEC) chaired by Vice-President Kashim Shettima.
Previously, Nigeria was perceived as non-compliant with the convention, leading to its blacklisting by the AWG.
The new CTC Practice Directions, which are legally binding, reflect Nigeria’s commitment to adhering to CTC obligations and ensure that Nigerian courts apply the convention directly.
As a result of these developments, Nigeria’s compliance scores in various categories have improved.
The AWG now recommends that Nigeria’s eligibility for the OECD discount be reconsidered, and while Nigeria remains on the CTC compliance index watchlist, it is making progress in addressing compliance issues.
