Aviation Finance and Leasing 2025

NIGERIA Law and Practice Contributed by: Tamuno Atekebo, Chinasa Unaegbunam, Naomi Kabowei and Favour Osayuwamen, Streamsowers & Köhn

pellers intended for use in Nigeria, are noted in the aircraft register maintained by the NCAA. The notation of an owner or lessor’s interest in the register establishes the priority of such interest in the aircraft in the event of any disputes or insolvency proceedings. The Civil Aviation Act (CAA) 2022 states that, upon the registration of such interest, no docu - ment affecting title to, or any interest in, such aircraft or engine or any other part will be valid – except between the parties to it – unless it is contained in the register. Such notation also alerts potential buyers or other interested parties about the existing security interest. 2.3.2 Registration If the Owner Is Different From the Operator An aircraft can be registered in Nigeria in the name of the operator or owner. Under the Nig.CARs’ General Policies, Procedures and Definitions, an “operator” is defined as ”the person, organisation or enterprise engaged in or offering to engage in an aircraft opera - tion (ICAO)” and “the person who causes or authorises the operation of an aircraft, such as the owner, lessee or bailee of an aircraft, or the PIC [pilot in command]”. Thus, an owner is subsumed within the definition of an operator. It is usual to have the names of the operator and owner included on the certificate of registration if they are distinct entities. 2.3.3 Aircraft/Engine-Specific Registers There is no specific register for leases concerning aircraft or engines. Such leases are noted in the air - craft register maintained by the NCAA. The NCAA is required to record in the national civil aircraft register any title to, or any interest in, any civil aircraft regis - tered in Nigeria and in any aircraft engine, propeller or appliance intended for use on any aircraft registered in Nigeria. 2.3.4 Registration of Leases With the Domestic Aircraft Registry A lease and a lessor’s interest must be registered and filed in the aircraft register maintained by the NCAA. Consequences for failing to do so are similar to the consequences for failure to register the title to an

aircraft. Leases are not subject to consent from any government entity. In many cases, a lease is registered at the time of registration of the aircraft. The formalities required for such a process include: • an application in the prescribed form; • a certificate or notice of deregistration from the previous state of registry (which is received by the NCAA directly from the state of registry) or, if the aircraft is new, a letter from the state of manu - facture confirming that the aircraft has not been registered in any other state; • a document showing proof of aircraft ownership (eg, a bill of sale); • if the aircraft is owned by a company, the names of the directors of the company owning or leasing the aircraft and their specimen signatures; • if the aircraft is on lease, a certified copy of the lease agreement with evidence of stamp duty pay - ment; • a certified copy of a current aircraft insurance cer - tificate; and • proof of payment of the prescribed fees. There is no statutory estimated period for completion of the registration of an aircraft/engine lease. In Nigeria, no government applications or consents are prerequisite to the execution and delivery of an aircraft and/or engine lease. 2.3.5 Requirements for a Lease to Be Valid and Registrable A lease need not be in a specific form to be valid and registrable in the aircraft register. However, where the lease or document transferring title is written in a lan - guage other than English, such document must be translated into English for it to be acceptable by the NCAA. The translated document must be certified, notarised or legalised in the manner legally recognised in the country where the transaction was conducted. 2.3.6 Taxes/Duties Payable for Registering a Lease No taxes or duties are payable for registering a lease with the NCAA. However, registration of a lease will attract statutory fees as prescribed by the NCAA.

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