Chief Executive Officer of Aero Contractors, Capt. Ado Sanusi, has urged the Nigerian government to strengthen legal frameworks and reform insurance regulations to fully leverage the Cape Town Convention (CTC) Practice Directions and expand access to dry lease options for Nigerian airlines.
Speaking during an interview in Lagos over the weekend, Sanusi emphasized that a comprehensive and strategic approach is needed if Nigeria is to benefit meaningfully from the CTC framework. He stressed the importance of clearly defining asset classes, procedural timelines, and legal definitions within a robust legal structure.
Sanusi advocated for a 10-day repossession window with limited rights of appeal, aligning Nigeria’s legal standards with global best practices. According to him, this would give international lessors greater confidence and boost leasing activities in the country.
To further enhance the efficiency of legal proceedings in aviation matters, he recommended specialized training for judges or the establishment of dedicated aviation courts. This, he noted, would speed up dispute resolution and improve investor confidence in the Nigerian aviation sector.
On insurance, Sanusi commended recent steps by the Nigerian Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) to allow up to 90% offshore insurance coverage for leased aircraft. However, he stressed the need for further reforms to align local insurance practices with international lessor expectations while still protecting Nigerian interests.
He proposed stronger collaboration between local insurers and international underwriters to enhance underwriting capacity and reduce long-term costs for airlines.
Sanusi also emphasized the role of Nigerian carriers in building industry credibility. He urged them to improve their risk management practices, strictly honor lease terms, avoid legal manipulation, and ensure timely payments to lessors. These steps, he said, are crucial for rebuilding trust and attracting foreign leasing opportunities.
“With improved legal protections and insurance structures, Nigerian airlines should actively engage lessors, showcasing these reforms and Nigeria’s improving Cape Town Compliance Index (CTC Index) ranking,” he stated.
He also highlighted funding opportunities from institutions like Afreximbank, which have shown readiness to support dry lease acquisitions. In the interim, Sanusi recommended a hybrid leasing strategy, combining wet leases with short-term dry leases to navigate current market limitations and aircraft availability challenges.
Reflecting on the current state of the sector, Sanusi lamented the adverse impact of Nigerian airlines’ limited access to dry leases. He pointed out that this has contributed to rising operational costs, slower fleet growth, forex scarcity, missed economic opportunities, and higher airfares—all of which hamper tourism and trade.
“With the right mix of political will, industry collaboration, and institutional reforms, Nigerian airlines can reclaim their place in the global aviation industry—this time, flying confidently on wings they have built themselves,” Sanusi concluded.
