The Nigerian government has signed another milestone agreement which would boost investors’ confidence in its aviation sector.
Acting Director General of Civil Aviation (DGCA), Capt. Chris Najomo, signed the updated Nigeria Civil Aviation Authority (NCAA) Procedure for IDERA.
Daily Trust reports that IDERA in aviation parlance is an Irrevocable Deregistration and Export Request Authorization (IDERA) and Registration of Aircraft.
The legal document protects the rights of aircraft financiers and lessors.
The signing occurred in Abuja in the presence of Minister of Aviation, Festus Keyamo.
This came after the federal government signed the Cape Town Convention (CTC) practice direction to reduce risks for creditors and investors in the aviation industry.
The IDERA procedure however gives confidence to aircraft financiers and lessors.
Keyamo explained that IDERA is an administrative remedy allowing the NCAA to approve aircraft deregistration upon the owner’s request, saying it would reassure lessors and financiers about their aircraft’s safety in Nigeria.
This procedure follows international standards, ensuring compliance with global aviation regulations even as it forecloses any legal tussle between lessors and lessees in the aviation industry.
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.
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