Nigeria signs Cape Town accord on aircraft lease

The federal government on Thursday signed the Cape Town accord on aircraft leasing, which allows asset-based financing, among other things.

The signing of the accord, which took place at the State House in Abuja under the watch of Vice President Kashim Shettima, had Allen Onyema, the chairman of Air Peace, and other stakeholders in the aviation sector in attendance.

The Cape Town accord aims to enhance leasing of aviation equipment, including aircraft, thereby expanding financing opportunities and reducing costs for airlines.

With the signing of the accord, Nigerian airline operators will be granted access to aircraft dry lease, which could lead to lower flight rates for passengers.

Aviation industry experts believe this development is a crucial step in revitalising Nigeria’s aviation sector, which has faced challenges in aircraft leasing due to high costs and risks associated with asset repossession.

The accord is anticipated to foster a more favourable environment for international lessors, ultimately benefiting the Nigerian aviation market and its passengers.