The Federal Government, through the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, has launched a Revised Insurance Regulation on Leased Aircraft.
The NAICOM Commissioner for Insurance, Mr. Olusegun Omosehin, announced the development on Monday in Abuja as reported by the News Agency of Nigeria (NAN).
The move aims to make aircraft more accessible for airline operators and help reduce airfares in Nigeria.
“The National Insurance Commission (NAICOM) and the Minister of Aviation and Aerospace Development have unveiled the Revised Insurance Regulation on Leased Aircraft to boost airline operations.
“Leasing aircraft gives operators the leverage to acquire new planes, which ultimately benefits Nigerian passengers,” the source read in part.
He explained that the new regulation aims to fix long-standing issues with insurance for leased aircraft by relaxing foreign insurance rules and boosting local insurer involvement, making it easier for Nigerian airlines to lease planes.
The initiative is expected to boost the aviation sector’s contribution to GDP by improving operational efficiency. It also reflects Nigeria’s commitment to aligning with international aviation standards, strengthening its global reputation in the sector.
What stakeholders are saying
Festus Keyamo (SAN), Minister of Aviation and Aerospace Development, explained that the new policy represents a well-rounded Nigerian approach that also meets international standards.
- The Managing Director of First Standard Insurance Brokers Limited, Dr. Adetayo John-Fisher, welcomed the policy, describing it as a step toward a more supportive environment for aircraft leasing that aligns with the government’s economic goals.
- Princess Zahrah Audu, Director-General of the Presidential Enabling Business Environment Council (PEBEC), commended the collaboration between stakeholders and emphasized the need for better airline service delivery.
The Chairman of United Airlines, representing the Airline Operators of Nigeria (AON), called for smooth implementation to ensure the policy delivers the intended results.
What you should know
In April, Minister Festus Keyamo highlighted that international lessors and manufacturers often insist on insurance from the international market, not local providers, before dry-leased aircraft can be brought into Nigeria.
- The Nigerian Civil Aviation Authority (NCAA) has updated its process for deregistering and exporting leased aircraft to meet global standards under the Cape Town Convention (CTC). The Procedure for the Recordation of Irrevocable Deregistration and Export Request Authorization (IDERA) procedure makes it easier for owners, lessors, and financiers to reclaim aircraft when operators fail to meet contract terms.
- This legal framework is designed to safeguard the interests of lessors, aims to foster trust, and encourage international leasing partnerships with Nigeria’s aviation sector.
This policy is a key move to lower air travel costs by making it easier for airlines to lease aircraft. With more flexible insurance rules, airlines can expand their fleets.
