Nigeria has taken a major step in enhancing its aviation sector by signing the Cape Town Accord on aircraft leasing.
The agreement, which has been in effect globally for 20 years, was officially signed by the federal government on Thursday, September 12.
The Cape Town Accord is designed to streamline the financing and leasing of aviation equipment, such as aircraft, through asset-based financing.
By adopting this agreement, Nigeria aims to expand its aviation financing opportunities and reduce the associated costs, bringing potential economic benefits to the sector.
The signing ceremony, held at the Presidential Villa in Abuja, was presided over by Vice President Kashim Shettima.
The event also saw the participation of key aviation stakeholders, including Allen Onyema, Chairman of Air Peace, one of Nigeria’s leading airlines.
With Nigeria now part of the Cape Town Accord, the country’s airline operators will gain access to more flexible leasing options, specifically dry leasing of aircraft.
This development is expected to lower operational costs for airlines, ultimately leading to reduced flight rates for passengers.
The move is expected to strengthen the competitive standing of Nigerian airlines, offering a significant boost to the nation’s aviation industry while providing cost-saving benefits for both operators and travelers.
