The Federal Government has signed the Cape Town Convention (CTC) Practice Directions in a move to reduce the cost of airline operations in the Nigerian aviation sector.

The CTC Practice Direction was signed 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 Direction, the Cape Town Convention becomes actively and fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the nation's aviation sector and enabling domestic airline operators to dry lease aircraft, among others.

Some local operators had, in the past, breached the Cape Town Convention which regulates aircraft leasing across the world, leading to the Aviation Working Group, co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would guide against a repeat of such breach.

Speaking after the signing of the CTC Practice Direction, Vice President 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 interest of the Nigerian nation," as well as preserve and promote the nation's airlines industry.

He said, "It is a great day for the Nigerian nation as they had fruitful engagements and were able to cross-pollinate ideas across all sectors and have come up with robust solutions to the challenges facing the Aviation industry.

The VP also commended the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, saying "All the issues agitating the minds of the airlines operators have been frontally addressed by the Minister, and on Monday they are meeting him to further consolidate all our gains."

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

He assured Airline operators that the present administration headed by His Excellency, President Bola Ahmed Tinubu, is a pro-business government, and will take all necessary measures to protect, promote, project and preserve the interest of the Nigerian nation.

On his part, the Finance Minister, Mr. Edun, promised to meet with airline operators and other stakeholders to perfect issues pertaining to agreements reached at the meeting with the Vice President.

Speaking on behalf of Airline Operators in Nigeria, the Chief Executive Officer of Air Peace Limited, Mr Onyema expressed appreciation to President Tinubu for enhancing a 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.

Also, Special Adviser to the President on Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr. Jumoke Oduwole, noted that the signing of the document will help reduce the cost of insurance as well as reduce the cost of doing business in the aviation sector while 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 on actualizing the Cape Town Convention was in line with the Ministry’s goal of enhancing the capacity of local airlines’ business.

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