FG Issues Circular for Cancellation of Leased Aircraft

FG Issues Circular for Cancellation of Leased Aircraft

The Federal Government has officially signed the Irrevocable Deregistration and Export Request Authorization (IDERA) Advisory Circular, facilitating the recordation and cancellation of leased aircraft in Nigeria.

The Minister of Aviation and Aerospace Development, Festus Keyamo, along with Chris Najomo, the Acting Director General of the Nigerian Civil Aviation Authority (NCAA), signed the document on Wednesday in Abuja. Keyamo explained that the initiative aims to provide Nigerian airlines with access to dry-leased aircraft, thereby enhancing their operational capacity.

He emphasized that the IDERA is an international requirement that will improve Nigeria’s standing among global lessors and financiers. Keyamo noted that while lessors can seek administrative approval from the NCAA to deregister aircraft, signing the IDERA is essential for implementing the recently adopted Practice Direction concerning the Cape Town Convention.

According to Keyamo, IDERA serves as the administrative mechanism through which the NCAA can authorize the deregistration of aircraft at the owner’s request. He mentioned that global aviation groups and operators are eagerly awaiting Nigeria’s endorsement of these documents to ensure the safety of their aircraft within the country.

He added, “After resolving judicial remedies via the Practice Direction, we are now focusing on the administrative process for the deregistration and export of aircraft from Nigeria.”

Keyamo also highlighted the dual remedies available to lessors in case of disputes: the judicial route, which involves court injunctions, and the administrative option to seek court permission for aircraft removal within ten days.

Chris Najomo, the Acting DG of NCAA, reiterated that the Cape Town Convention, effective in the UK since November 2015, aims to lower financing costs for high-value mobile assets that frequently cross borders. He explained that the primary impact of the Convention on aircraft registration and operation in Nigeria is that registered owners can request IDERA for eligible aircraft. Once recorded, only the party designated as the “authorised party” by the registered owner will have the right to deregister and export the aircraft.