•Omosehin: It’s a milestone for sustainable aviation insurance.
Minister of Aviation and Aerospace Development, Festus Keyamo, yesterday officially unveiled the Revised Insurance Regulations for Leased Aircraft to curb flight disruption in the country.
The document was launch in partnership with National Insurance Commission (NAICOM).
Keyamo stated that the revision aligned with President Bola Tinubu’s quest to boost ease of doing business and strengthen airline operation.
He said the current administration was working round the clock to create an enabling environment for airline operators to thrive and inspire change in the sector.
Commissioner for Insurance/Chief Executive, NAICOM, Mr. Olusegun Omosehin, described the launch of the regulations as the beginning of a revolution in the aviation sector.
Omosehin said the document represented a turning point in aviation leasing and financing to Nigerian aviation operators, adding that the regulation will go a long way to reduce the cost of air tickets in the country, give comfort to Nigerian airline operators, and restore confidence among foreign investors.
The unveiling of the revised framework took place in Abuja.
Keyamo said, “The federal government is doing a lot to ensure airline operators enjoy friendly insurance policies that would help the operators do their businesses with ease.
“We are proud of the progress made in enhancing the aviation ecosystem in Nigeria, our focus is on investor-friendliness, empower the local operators, ensure compliance with international standards, and drive growth and development in the aviation industry.”
He stated that the revised insurance regulations were expected to boost the aviation sector, improve Irrevocable Deregistration and Export Request Authorisation (IDERA), and allow local operators to cede up to 90 per cent of risk to international markets under certain conditions, in line with the Cape Town Convention.
The minister commended NAICOM for working hard to ensure the policy saw the light of day.
Omosehin said the development marked a significant milestone in promoting a stable and sustainable aviation insurance market and a testament to the current administration’s commitment to creating an enabling environment that fostered growth, investment, and development.
He said, “This revised regulation, which is a product of several rigorous stakeholders’ engagements and collaborations with key players across the aviation and insurance sectors, including financiers and lessors, is issued in fulfilment of the desire of this administration to create the necessary enabling environment for businesses to flourish.
“The Nigerian insurance industry is adequately regulated, and the commission enforces prudential requirements that ensures sound underwriting.
“Also, liberalisation of requirements for leased and financed aircraft is to further assure the international market that the aviation market in Nigeria exhibits growing capacity with significant increase in market exposure and support for healthy spreading of risks.”
Omosehin added, “As we launch this revised regulation, the National Insurance Commission is committed to an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.
“We look forward to working with all stakeholders to ensure its successful implementation in ways that enhance growth and development, as well as attract investment, and create opportunities for Nigerians.
“This is anchored on our firm belief that with the right insurance framework, Nigeria’s aviation sector can overcome challenges, adapt to changes, and thrive in an ever-evolving landscape.”
Omosehin said the commission not only agreed to pilot the process but also took ownership.
He stressed that the policy will enhance the country’s Gross Domestic Product (GDP) and promote the stability of the aviation insurance market.
Omosehin further explained that the insurance policy was designed in line with Nigeria local content, adding that “aviation is a critical sector to propel the growth which Nigerians desires”.
He said, “The leasing of aircraft will give the airline operators the needed advantage required in procuring more aircraft, which will ultimately be to the advantage of Nigerians and other stakeholders.”
The NAICOM boss urged stakeholders to work together to harness the full potential of the sector and drive economic growth and development of the country.
Director General of Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo, who was represented by Director, Air Transport Regulation, Mrs. Olayinka Babaoye, said NCAA remained passionate about the development, and promised that NCAA will do its best to support the policy.
Director-General, Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha Audu, assured Nigerians of the government’s willingness to formulate friendly policies that will enhance business operation in Nigeria.
Audu admonished airline operators in Nigeria to treat customers responsibly and avoid flight delay and cancellation.
