By Itohan Abara-Laserian
LAGOS/Nigeria: Recent reforms strengthening Nigeria’s implementation of the Cape Town Convention have begun to improve confidence among aircraft financiers and lessors, according to the Chief Executive Officer of Falcon Aerospace Ltd., Mr Erika Achum.
Achum, who spoke in Lagos during an interview with the News Agency of Nigeria (NAN), said clearer enforcement mechanisms for aircraft financing and leasing had helped address concerns that previously made some international lenders and lessors cautious about doing business with Nigerian operators.
He identified the Cape Town Convention Practice Direction issued in September 2024 as an important development in the effort to strengthen Nigeria’s aviation financing environment. The Practice Direction was signed by the Chief Judge of the Federal High Court, Justice John Tsoho, and was designed to provide clearer judicial procedures for handling aircraft financing and related disputes.
According to Achum, the development has encouraged greater interest in aircraft financing and leasing, particularly by improving confidence in the protection available to financiers and lessors when transactions involve Nigerian operators.
He said concerns over the enforcement of aircraft repossession rights had previously influenced some lenders and lessors to favour aircraft registered outside Nigeria.
Achum said aircraft operated in the country were sometimes registered on foreign platforms, including the United States’ N-registry and jurisdictions such as Aruba, San Marino and the Isle of Man, because of considerations involving financing, insurance and certification.
He, however, argued that improving the domestic operating environment could reduce some of the factors encouraging foreign registration.
The Falcon Aerospace chief executive called for clearer regulatory distinctions between privately owned aircraft and commercial charter operations, saying the two categories should not necessarily face identical regulatory requirements.
He also advocated reform of the temporary-import regime for aircraft and a faster and more cost-effective process for domestic certification.
Beyond registration, Achum said the question of government revenue from private aviation should be viewed more broadly, arguing that the jurisdiction in which an aircraft is registered does not by itself determine the revenue Nigeria earns from its operation.
He identified import duties and Value Added Tax on aircraft, regulatory certification and permit fees, as well as taxes associated with charter operations, among the channels through which government generates revenue from aviation activities.
The executive also acknowledged that foreign registration had previously created some challenges for local employment, particularly where operators required crew members to possess licences issued by the aviation authority of the aircraft’s registration jurisdiction.
He said the situation was gradually changing, with more Nigerian pilots and engineers acquiring foreign licences in addition to their Nigerian qualifications.
According to him, the development has enabled Nigerian aviation professionals to work on foreign-registered aircraft while continuing to build their careers and gain experience within the country.
Achum rejected suggestions that Nigeria’s private aviation sector was either inadequately regulated or insufficiently taxed.
Instead, he called for policies that would allow the industry to expand without weakening the safety requirements governing aviation operations.
He stressed that calls for a more business-friendly regulatory environment should not be interpreted as a demand for relaxed safety standards.
“This does not mean lowering safety standards. In fact, safety is fundamental to holding a valid Nigeria Civil Aviation Authority Air Operator’s Certificate,” he said.
Achum explained that operators seeking and retaining the required certification must comply with safety management requirements, maintenance oversight, crew licensing and training obligations, all of which are subject to regulatory scrutiny.
His comments come against the backdrop of broader efforts by the Federal Government to improve Nigeria’s standing under the Cape Town Convention and make aircraft acquisition and leasing more attractive to operators and financiers.
Nigeria’s compliance rating under the Convention rose from 49 per cent to 70.5 per cent following the 2024 Practice Direction, while the subsequent operationalisation of the Irrevocable Deregistration and Export Request Authorisation (IDERA) mechanism was reported to have raised the rating further to 75.5 per cent.
The Aviation Working Group has subsequently recognised the improvement in Nigeria’s compliance framework, with the country moving away from the concerns that had previously affected its attractiveness to aircraft lessors and financiers.
For Achum, sustaining the gains will require the government to combine stronger legal protection for aviation investments with regulatory processes that are predictable, efficient and commercially responsive.
He said Falcon Aerospace remained committed to contributing to the professionalisation of Nigeria’s private aviation sector and supporting the development of an industry capable of attracting investment while maintaining internationally acceptable safety standards.
