FAAN: Cape Town Convention Will Enhance Investor’s Confidence

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, recently stressed on the significance of the newly signed Practice Direction on the Cape Town Convention. 

In her remarks at the just concluded Aviation Safety Round Table Initiative (ASRTI) breakfast meeting in Lagos, she described the development as a game-changer for Nigeria’s aviation sector, with the potential to enhance investor confidence, streamline financing, and position Nigeria as a competitive aviation hub.

Kuku noted that the Cape Town Convention was designed to simplify cross-border financing and leasing of commercial aircraft and engines. 

“This is an extremely welcome development,” she said, referencing her background in infrastructure finance. 

“Aviation is a highly capital-intensive industry that thrives on strong investor confidence,” she added.

She acknowledged the commendable steps taken by the Nigeria Civil Aviation Authority (NCAA) towards compliance but stressed the need for thoughtful implementation to address challenges related to securing interest in aircraft and the legal application of financing. 

According to her, the convention presents both opportunities and challenges, particularly for airlines and the broader economy.

Kuku also harped on the government’s efforts to engage critical stakeholders, including the insurance sector, to address major cost drivers such as financing and aviation fuel. 

She expressed optimism that the Practice Direction would attract additional investments, bolster Nigeria’s reputation, and stimulate economic benefits such as job creation and enhanced access to leased aircraft.

“As champions within our sector, the messaging we put out to the media is critical to how the global community perceives us, investors, lessors, and stakeholders are watching us closely. Our actions must demonstrate leadership and commitment to driving the sector forward,” she further said.

Speaking from her position as an airport operator, Kuku acknowledged the current challenges facing the industry, including flight delays, and assured stakeholders of FAAN’s efforts to support the expected influx of aircraft.