September 18, (THEWILL) – Nigeria, on Wednesday, saw its rating rise sharply on the global index from 49 to 70, as the Aviation Working Group (AWG), a group comprising of major aviation manufacturers including Boeing and Airbus, leasing companies and financial institutions that contribute to the development of policies, laws and regulations that facilitate advanced international aviation financing and leasing, welcomed the country’s recent signing of the Cape Town Convention Practice Direction.
THEWILL had previously reported that the signing of the Practice Direction, which will significantly lower the cost of aircraft acquisition (Dry lease), and financing, as well as revolutionise the aviation sector, was doggedly pursued by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN.
In its reaction to the development, the AWG, co-chaired by Boeing and Airbus, the world’s two largest aircraft manufacturers, on Wednesday, formally notified the Nigerian Aviation Minister of its decision to raise Nigeria’s rating and thanked him and his team “For the time, effort, and skill over the past months on the Practice Direction, issued last week.”
It added that “based on the important legal development, AWG has swiftly and materially increased the Nigeria CTC compliance index from 49-70.5,” the AWG said in a note seen by THEWILL.
Nigeria’s new rating is its highest on record and “Gives comfort to financiers and the leasing world”, Tunde Moshood, the Minister’s SA Media and Communications, said in a statement following the announcement.
“There is also potential for further increase in the next few weeks as the Minister has directed the NCAA to immediately adjust its administrative rules called IDERA to also fully align with the Convention to further boost the confidence of financiers and lessors across the world”, Moshood added.
A copy of the AWG CTC Compliance Index Adjustment Notice dated September 17, 2024, was also formally issued and obtained by THEWILL.
This is a major achievement in the aviation sector for Nigeria under the administration of President Bola Tinubu, who assumed office as president on May 29, 2023.
Keyamo, a senior advocate of Nigeria, who was appointed in August last year, has widely received commendations for leading what appears to be a revolution in the aviation sector.
Nigerian airline operators, who bought most of their fleet out of pocket, say the country’s compliance with the CTC Practice Direction will enable them to bring in more aircraft via dry lease to improve their services, serve more routes and lower the cost of air tickets.
