By Itohan Abara-Laserian
Falcon Aerospace Ltd., a private aviation operator, says strengthening of implementation of the Cape Town Convention in Nigeria’s aviation industry has provided protection for aircraft financiers and lessors.
The company’s Chief Executive Officer, Mr Erika Achum, made this known on Friday in Lagos in an interview with the News Agency of Nigeria (NAN).
He described the Cape Town Convention Practice Direction signed in September 2024 by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo (SAN), as a significant step.
Achum said that the step had improved confidence in Nigeria’s aviation market and encouraged more financing and leasing activities involving Nigerian operators.
He said that some lenders and lessors had preferred foreign registration because of concerns over enforcement of aircraft repossession rights in Nigeria.
He urged clearer rules distinguishing private ownership from commercial charter operations, reform of the temporary-import regime, and a faster, more cost-effective domestic certification process.
He said foreign registration, particularly on the U.S. N-registry and jurisdictions such as Aruba, San Marino and the Isle of Man, was largely due to financing, insurance and certification requirements.
On concerns over revenue losses from foreign-registration of aircraft, he said the country of registration alone did not determine Nigeria’s revenue.
He identified import duties and value added tax on aircraft, regulatory certification and permit fees, and taxes on charter income as some of the channels through which the Federal Government derived revenue from the sector.
He noted that foreign registration previously posed a challenge to local employment because some foreign-registered aircraft required crews holding licences issued by the relevant foreign aviation authority.
He said that more Nigerian pilots and engineers had, however, begun to obtain foreign licences alongside their Nigerian credentials.
Achum said this had enabled them to work on foreign-registered aircraft while retaining employment and training opportunities within Nigeria.
Achum said that private aviation sector was not under-regulated or under-taxed.
He urged the Federal Government to support the industry’s growth while maintaining existing safety standards.
He also appealed to the government avoid excessive regulation of the industry.
“This does not mean lowering safety standards. In fact, safety is fundamental to holding a valid Nigeria Civil Aviation Authority (NCAA) Air Operator’s Certificate.
“Operators are required to maintain safety management systems, undergo maintenance oversight, ensure crew licensing, and provide training, all of which are audited before certification,” he said.
He said that Falcon Aerospace was committed to the professionalisation of Nigeria’s private aviation industry. (NAN)
Edited by Ijeoma Popoola