The Minister of Aviation and Aerospace Development, Festus Keyamo, has committed to accelerating the deregistration process in Nigeria for defaulted leased aircraft under the Cape Town Convention, reducing the timeframe from five days to just four.
He made this promise while speaking to Boeing executives in the United States, where he is participating in a week-long series of discussions with the aircraft manufacturer to improve Nigeria’s civil aviation sector.
Nairametrics obtained this information from video excerpts shared by the Aviation Minister, where he also emphasized his personal guarantee to uphold agreements with lessors.
Keyamo assured that aircraft entering Nigeria would be protected and, if necessary, repossessed swiftly through judicial processes or the Nigerian Civil Aviation Authority (NCAA), which he oversees.
“I want you to see me here as the Minister, and I am giving a personal guarantee that, beyond legal compliance, I will not tolerate any frustration of agreements with any lessor operating within Nigeria or involving aircraft entering Nigeria.
“I personally guarantee the safety of these aircraft and their repossession, whether through the judicial process or the Nigerian Civil Aviation Authority (NCAA), which I oversee. I understand that the Cape Town Convention allows for deregistration within five days, but I will ensure that we can achieve it within four days,” Keyamo said.
The Aviation Minister also assured Boeing executives that Nigeria is actively addressing the insurance challenges connected with dry lease agreements in the aviation sector.
He noted that international lessors prefer the risk to be covered by the international market due to concerns about the reliability of local insurers, which has posed a significant hurdle. However, he emphasized that the government is committed to resolving this issue to enhance the industry and strengthen ties with international lessors.
What you should know
The Irrevocable Deregistration and Export Request Authorization (IDERA) is a key provision under the Cape Town Convention that allows a creditor, typically the lessor or financier, to deregister and export an aircraft in the event of a lessee’s default.
Once an IDERA is lodged with the Civil Aviation Authority, the creditor can request deregistration and export, which must be processed within five working days. This ensures a swift recovery of the aircraft, providing strong protection for the lessor’s interests.
On Wednesday in Seattle, USA, major Nigerian airlines, led by Aviation Minister Festus Keyamo, signed a Memorandum of Understanding (MoU) with Boeing, focusing on aircraft acquisition support, technical assistance, and operational training to modernize their fleets and improve efficiency. The agreement also includes leadership development, safety enhancements, and collaboration with regulatory bodies to ensure compliance and operational excellence.
In recent months, Aviation Minister Festus Keyamo has been working to secure better terms for Nigerian domestic airlines to obtain aircraft, focusing on dry lease agreements with international lessors.
Keyamo identified key challenges, including the need for international insurance and the requirement to amend Nigeria’s legal framework to comply with the Cape Town Convention, ensuring lessors can repossess aircraft without court interference.
Addressing these issues is crucial for removing Nigeria from the aviation blacklist and fully integrating its airlines into the global leasing market.