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ELRA Calls on Airlines to Comply with Equipment Leasing Act

ELRA Calls on Nigerian Airlines to Adhere to Equipment Leasing Act Amid Sector Challenges
The Equipment Leasing Registration Authority (ELRA) has issued a strong appeal to Nigerian airline operators to fully comply with the Equipment Leasing Act (ELA) 2015, underscoring the significant regulatory and commercial benefits of proper asset registration. This call comes at a critical juncture for the aviation industry, which is currently grappling with operational disruptions, including widespread flight cancellations and delays caused by shortages of air traffic controllers during a recent government shutdown, as well as the financial strain of meeting new Federal Aviation Administration (FAA) requirements.
Regulatory Framework and Industry Benefits
In a statement released from Abuja, ELRA praised Azman Air for its proactive commitment to full compliance with the Act. The statement, issued by ELRA’s Head of Media and Corporate Communication, Adebola Brookslyn, quoted Registrar and CEO Donald Wokoma, who urged all airline operators to take advantage of the protections and advantages provided by the ELA. This followed a courtesy visit by Azman Air’s Chief Financial Officer, Dr. Muhammad Abdulmunaf, to ELRA, shortly after the Authority issued an advisory mandating the registration of leased movable assets.
Wokoma emphasized that the Act requires the registration of all leased movable assets within Nigeria’s aviation sector, including aircraft, engines, ground support equipment, IT infrastructure, and operational tools. He highlighted that compliance offers operators enhanced legal certainty, stronger asset protection, and increased confidence from financiers and international lessors. Registration under the ELA 2015 also facilitates improved access to financing, strengthens rights during dispute resolution or insolvency, and provides a clear framework for cross-border leasing—an essential factor for airlines dependent on imported aircraft.
Furthermore, Wokoma noted that the Act promotes faster and more cost-effective dispute management through Alternative Dispute Resolution (ADR), while enhancing regulatory transparency and operational security throughout the aviation leasing value chain. He reaffirmed ELRA’s commitment to supporting Nigeria’s aviation sector by aligning the country’s leasing framework with international best practices, thereby strengthening domestic operators’ positions in cross-border leasing markets and boosting Nigeria’s attractiveness to foreign investors.
Operational Disruptions and Industry Response
The call for compliance arrives amid significant operational challenges for Nigerian airlines. Over the past weekend, more than 1,500 flights were canceled on Saturday and over 2,900 on Sunday, reflecting the ongoing impact of the government shutdown and related staffing shortages. Airlines are also contending with the financial pressures of implementing new FAA directives, which further strain their operations. While some carriers, such as Alaska Air, have reported that their operations remain unaffected by specific technical issues like the Airbus software fix, the broader industry continues to experience residual effects from recent disruptions, with a gradual return to normal operations anticipated.
Azman Air’s CFO, Dr. Muhammad Abdulmunaf, described the ELA 2015 as a forward-looking regulatory framework that enhances operational protection, strengthens corporate governance, and supports the stability of the aviation sector. He assured ELRA of Azman Air’s readiness to comply fully with the Act, announcing the immediate formation of an internal compliance team to ensure seamless alignment with regulatory requirements.
ELRA reiterated its dedication to fostering a transparent, safe, and investment-friendly leasing environment for all operators, emphasizing the critical importance of compliance as airlines navigate both regulatory changes and ongoing operational challenges.

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