The Acting Director General of Civil Aviation, Capt. Chris Najomo, has signed the updated NCAA Procedure for IDERA.
An IDERA is known as Irrevocable Deregistration and Export Request Authorisation (IDERA) and Registration of Aircraft, a legal document used in aviation to protect the rights of aircraft financiers and lessors.
The signing occurred in Abuja, with the Minister of Aviation, Festus Keyamo, overseeing the process. The update aims to boost confidence among aircraft financiers and lessors.
Keyamo explained that IDERA is an administrative remedy allowing the NCAA to approve aircraft deregistration upon the owner’s request. This procedure follows international standards, ensuring compliance with global aviation regulations.
The Minister stated that signing the IDERA documents would reassure lessors and financiers about their aircraft’s safety in Nigeria. Additionally, aircraft operators worldwide have been waiting for Nigeria to sign approval for deregistration to protect their assets.
This move effectively resolves previous uncertainties surrounding judicial disputes between lessors and lessees in the aviation sector.
Moreover, the Minister emphasized that signing the IDERA documents was crucial to ensure lessors and financiers feel secure in Nigeria.
Consequently, aircraft operators globally have anticipated Nigeria’s approval, knowing it safeguards their investments. Furthermore, Keyamo noted that this step addresses past uncertainties in judicial processes involving lessor-lessee disputes.
Keyamo added: “We signed the practice direction guiding the court on interpreting the Cape Town Convention and its protocols.” Previously, Nigeria’s judicial uncertainty had harmed its global reputation, making it less appealing to aircraft lessors.
“Now that judicial remedies are in place, attention has shifted to the administrative aspects of deregistration and exportation. Keyamo explained that lessors now have two remedies: either judicial proceedings or the administrative route,” he said.
He highlighted that the NCAA could issue the IDERA authorisation either after a court ruling or through an administrative request. This flexibility ensures that aircraft owners can seek swift resolution if disputes arise.
Speaking on the impact of IDERA, Captain Chris Najomo explained that it empowers registered owners to request Irrevocable Deregistration and Export Authorisation over eligible aircraft.
The IDERA process is governed by the Cape Town Convention and Aircraft Protocol, protecting creditors’ rights in financing and leasing transactions.
After reviewing applications and ensuring compliance, the NCAA records the IDERA. Once recorded, creditors gain the right to deregister and export aircraft in case of debtor default. If a default occurs, the creditor can invoke their rights under the IDERA.
The NCAA will then deregister the aircraft and issue an export request authorization, allowing its removal from the country. This process secures creditors’ interests, ensuring swift recovery of aircraft in the event of nonperformance by the debtor.
Recall that Nigeria finally exited the depressing list among nations with bad records of defaulting aircraft agreement lease rentals.
This came as the country has now complied fully with the Cape Town Convention on dry-leasing of aircraft by preparing and signing the Practice Direction, the country’s global rating status has once again soared higher.
As a result, the Aviation Working Group (AWG), which is co-chaired by Boeing and Airbus companies, has removed the country from its watchlist.
The removal of the country from the watchlist would enable Nigerian airlines to access aircraft on a dry leasing basis, while global financial companies would also be able to partner with Nigerian airlines for aircraft financing.
With 75.5, we are completely off the watchlist and the Aviation Working Group (AWG) co-chaired by Airbus and Boeing, termed it a high score for the country and it matches the scores of most of the big nations in the world, which access big aircraft finances. We have that kind of access now I can assure you.
