Nigeria is set to tackle the legal obstacles that have historically hindered Nigerian airlines from dry-leasing aircraft, according to Festus Keyamo, the Minister of Aviation and Aerospace Development. In a recent interview with Arise News TV, Keyamo disclosed plans to introduce a new practice direction aimed at aligning Nigeria’s legal framework with the Cape Town Convention (CTC), which Nigeria has ratified.
The proposed practice direction will set out specific guidelines for the judiciary, including instructions not to issue injunctions that prevent the repossession of dry-leased aircraft, a common issue that has impacted the credibility of Nigeria’s aviation sector. This move is designed to safeguard the rights of aircraft owners and lessors, ensuring they can reclaim their assets swiftly if an airline defaults.
Further, the new legal protocol will allow aircraft owners to seek relief directly from the Nigerian Civil Aviation Authority (NCAA), which will be required to grant such relief within five days. Courts will also be mandated to provide relief to creditors within ten days, facilitating the removal of aircraft from Nigeria if necessary.
Keyamo highlighted the importance of these changes, noting consultations with key judicial and governmental figures, including Nigeria’s attorney general and the chief justice, as well as the president and vice president. “All of us have agreed that it is a critical issue,” Keyamo emphasized, underscoring the unified approach to reform.
The need for legal reform was underscored by interactions with the Aviation Working Group (AWG), a UK-based global aviation watchdog. The AWG pointed out that legal hurdles in Nigeria have led to situations where local businessmen, after failing to meet lease obligations, have secured court injunctions to block the repossession of aircraft. Such practices have not only harmed Nigeria’s reputation but also restricted the growth and competitiveness of its airlines.
By amending the practice directions in courts to prohibit such injunctions, Nigeria aims to open up new opportunities for its carriers. This will enable them to access aircraft under conditions similar to those of major international airlines, thereby leveling the playing field in the global aviation market.
