Nigeria: FG signs CTC agreement to reduce airline operating cost

PHOTO

The federal government, on Thursday, signed the Cape Town Convention (CTC) Practice Directions in a move to reduce the cost of airline operations in the Nigerian aviation sector.

The agreement was made 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 Directions, the Cape Town Convention becomes fully operational in Nigeria, thereby reducing insurance costs for airlines, restoring investor confidence in the nation’s aviation sector, and enabling domestic airline operators to dry lease aircraft, among other benefits.

A statement issued by the Vice President’s spokesman, Stanley Nkwocha, noted that some local operators had previously breached the Cape Town Convention, which regulates aircraft leasing globally. This led to the Aviation Working Group, co-chaired by Airbus and Boeing, warning that Nigeria would be blacklisted until it implements a law to prevent such breaches.

Speaking after the signing, Shettima said the administration of President Bola Ahmed Tinubu is a pro-business government that is ready “to take all the necessary measures – as painful as some might be – to protect, promote, project, and preserve the interests of the Nigerian nation,” as well as support and advance the nation’s airline industry.

He said, “It is a great day for the Nigerian nation. We had fruitful engagements and were able to exchange ideas across all sectors, leading to robust solutions for the challenges facing the aviation industry.

“I want to take this opportunity to commend Justice John Tsoho, the Chief Judge of the Federal High Court. Judges are, by nature, very conservative. For him to address the issue directly and sign the Cape Town Convention (CTC) Practice Directions is truly commendable.”

The Vice President also praised the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, saying, “All the issues concerning airline operators have been addressed by the Minister, and on Monday, they will meet him to further consolidate our gains.”

Shettima assured airline operators in the country that President Tinubu will do everything possible to promote and preserve the Nigerian airline industry.

He added, “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 current administration, headed by His Excellency President Bola Ahmed Tinubu, is a pro-business and pro-Nigeria government that will take all necessary measures to protect, promote, project, and preserve the interests of the Nigerian nation.

“Air Peace has a fleet of 35 aircraft with 26 more on order. Rest assured that President Bola Ahmed Tinubu is keenly interested in the promotion and preservation of the Nigerian airline industry. I spoke with him about three days ago, and he was very interested in the outcome of our deliberations today. I will report back to him.”

The Finance Minister, Mr. Edun, promised to meet with airline operators and other stakeholders to finalize issues related to the agreements reached at the meeting with the Vice President.

He stated, “My Lord, the CJ of the Federal High Court, has called it an action to revolutionize the airline industry. PEBEC is all about improving the business environment and reducing costs. What has been signed here will substantially reduce costs in the airline industry, facilitate growth and development, and include further actions that I’m sure will be taken once I meet with the airline industry and also discuss some charges with Customs that they want lowered, and which they believe by law should have been implemented at lower levels.

“So, we’ll discuss that on Monday; it will be a further step toward improving the business environment for airlines. It’s all part of a strategy that has already produced a growing economy, lower inflation, a relatively stable exchange rate, and increased foreign reserves, with a positive balance of trade.”

Speaking on behalf of airline operators in Nigeria, the Chief Executive Officer of Air Peace Limited, Mr. Onyema, expressed appreciation to President Tinubu for bringing about 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 Ahmed Tinubu has once again demonstrated that he is not only a listening President but has gone a long way to make doing business in the aviation industry easier than ever before since the creation of this country called Nigeria.

“We, the airline operators, are extremely happy and commend him for what he has done today. Today is a revolution. President Bola Ahmed Tinubu has initiated a positive revolution in the aviation industry by implementing the Cape Town Convention Practice Directions in Nigeria,” Onyema stated.

Special Adviser to the President on the Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr. Jumoke Oduwole, noted that the signing of the document will help reduce insurance costs as well as the cost of doing business in the aviation sector.

She said, “Nigerians have recently been seeing high flight ticket prices due to several factors, including foreign exchange issues and other regulatory and bureaucratic challenges. However, because the President is committed to addressing these challenges one by one, this is one of the outcomes of his efforts.

“I just want to thank the President for his attention to easing the business environment and making Nigeria a progressively easier place to start and grow a business.”

The 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 aligns with the Ministry’s goal of enhancing the capacity of local airlines.

She added that the signing of the document will reassure the international community that investing in Nigeria is safe.

“Investors can bring their aircraft into Nigeria, and if there is any problem, such aircraft would be recovered within the 10-day period provided by Nigeria and the Cape Town Convention. This is an unprecedented achievement and will boost Nigerian airlines and the entire aviation industry,” said the Minister.

On his part, the Chief Executive Officer of the National Insurance Commission of Nigeria, Mr. Olusegun Omoseye, said the signing of the document marks significant progress for Nigeria’s aviation sector and the economy in general.

Get real-time news updates from Tribune Online! Follow us on WhatsApp for breaking news, exclusive stories and interviews, and much more. Join our WhatsApp Channel now