On Thursday, the Nigerian government signed the Cape Town Convention (CTC) to facilitate the leasing of aviation equipment, more than two decades after the convention came into effect, Cape {town} Etc reports.
The Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment was created in Cape Town in November 2001 under the auspices of the International Civil Aviation Organization (ICAO) and the International Institute for the Unification of Private Law (UNIDROIT), was designed to make financing and securing high-value aviation assets, such as aircraft and engines, easier.
It helps overcome the challenges posed by different legal systems and the fact that these assets don't stay in one place, making it simpler for lenders to provide financing and for businesses to manage their aircraft.
As reported by Vanguard , the signing of the CTC will reduce the cost of insurance for airlines, restore investors' confidence in Nigeria's aviation sector and enable domestic airline operators to dry lease aircraft.
The country was threatened with being blacklisted by the Aviation Working Group (co-chaired by Airbus and Boeing) as some local operators breached the CTC.
