Nigeria’s aviation sector has achieved a significant milestone by exiting the Aviation Working Group (AWG) watchlist due to an improvement in its compliance rating, which has increased from 70.5% to 75.9%. The announcement was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, during the inauguration of the Joint User Hydrant Installation 2 (JUHI 2) in Lagos. This development follows Nigeria’s commitment to the Cape Town Convention, which governs the dry-leasing of aircraft. In September, compliance efforts had already propelled the nation’s aviation rating from a concerning 49.5% to a compliant 70.5%. The latest rating enhancement marks Nigeria’s official departure from the list of non-compliant countries, providing renewed optimism in the sector.
Keyamo emphasized the importance of this achievement for Nigeria’s aviation industry, stating that it opens up new avenues for aircraft financing and leasing on a global scale. In the past decade, requests for essential documents needed to foster confidence among aviation financiers and lessors were overlooked. However, the recent signing of the updated Irrevocable Deregistration and Export Request Authorization (IDERA) document has empowered the Nigerian Civil Aviation Authority (NCAA) to facilitate the deregistration and export of aircraft, thereby aligning with international standards. This administrative shift broadens the scope for domestic airlines to access aircraft leasing markets, which is expected to have a knock-on effect on flight frequency, service offerings, and pricing competitiveness.
The AWG’s recognition of Nigeria’s improved score as “high” indicates a substantial stride toward aligning with global aviation standards. Keyamo noted that this new rating is comparable to those of other major nations involved in aircraft financing. It is a significant endorsement of Nigeria’s compliance journey, transforming its image from being blacklisted to now being viewed as a credible participant in the global aviation arena. This elevation promotes Nigeria’s aviation sector as a viable market for international stakeholders, fostering an environment conducive to investment and growth.
A statement from Tunde Moshood, Keyamo’s Special Adviser, further corroborated the positive development. Highlighting the impact of the IDERA, Moshood described the score increment as a vital leap for the country’s aviation compliance landscape. It lays the groundwork for improved relationships with creditors and lessors, unlocking a world of opportunities for local airline operators. As Nigeria positions itself within the “high category” on the Cape Town Convention Compliance Index, the anticipated repercussions include increased frequency of flights, expansion of service routes, and more competitive ticket prices which would ultimately favor Nigerian consumers.
The inauguration of the JUHI 2 depot is also a crucial addition to Nigeria’s aviation infrastructure, showcasing the collaborative efforts of key industry players. Patience Dappa, CEO of Masters Energy Oil and Gas and Chairman of JUHI 2 Limited, spoke on the decade-long journey to establish the facility. The JUHI 2 depot is notable for being the largest airside jet fuel storage location in Nigeria, with a storage capacity of 15 million liters. Dappa reflected on the collaboration among multiple stakeholders, including Eterna Plc, Techno Oil, and Rahamaniyya Oil and Gas, which culminated in the successful construction of this state-of-the-art fuel depot.
Through this comprehensive partnership model, the JUHI 2 facility not only strengthens the local aviation fuel supply chain but also enhances the reliability and efficiency of aviation operations in Nigeria. Dappa stressed that the completion of this facility signals more than just infrastructural advancement; it embodies a commitment to excellence in aviation fuel management. This collective endeavor demonstrates resilience and innovative spirit in overcoming challenges, further underscoring the need for collaborative approaches in driving the aviation sector’s growth in Nigeria. The successful realization of the JUHI 2 project, aligned with improved regulatory compliance, is anticipated to invigorate the Nigerian aviation market and foster an environment ripe for further developments in the industry.
