The Federal Government on Thursday, September 13, signed the Cape Town Convention (CTC) Practice Directions to reduce operational costs for airlines in Nigeria. The signing was conducted by the Chief Judge of the Federal High Court, Justice John Terhemba Tsoho, during a meeting of the Presidential Enabling Business Environment Council (PEBEC) led by Vice President Kashim Shettima at the Presidential Villa in Abuja.
The CTC Practice Directions will activate the full implementation of the Cape Town Convention in Nigeria, aiming to lower insurance costs for airlines, restore investor confidence, and facilitate aircraft leasing. Previously, non-compliance with the convention had put Nigeria at risk of being blacklisted by the Aviation Working Group.
Vice President Shettima commended the signing as a significant boost for Nigeria’s aviation sector, reaffirming the administration’s commitment to supporting the industry. Finance Minister Wale Edun assured further engagements with stakeholders to resolve outstanding issues and enhance the business environment for airlines.
Airline operators, including Air Peace CEO Allen Onyema, welcomed the initiative, describing it as a historic breakthrough for the sector. The move is expected to ease regulatory and bureaucratic barriers, lower flight ticket prices, and increase Nigeria’s attractiveness to international investors.
Representing the Minister of Aviation and Aerospace Development, Dr. Anastasia Gbem emphasized that adopting the convention will strengthen local airlines and reassure investors. Additionally, the Chief Executive Officer of the National Insurance Commission of Nigeria, Olusegun Omoseye, underscored the importance of this development for both the aviation sector and the broader economy.