By Ladi Gbegi
The National Insurance Commission
,NAICOM, and the Federal Ministry of Aviation and Aerospace Development have unveiled a Revised Insurance Regulation on Leased Aircraft, aimed at revitalizing airline operations and reducing airfares across Nigeria.
Unveiling the regulation at an event in Abuja on Monday, the Commissioner for Insurance, Mr. Olusegun Omosehin, stated that the new policy is aimed at stabilizing the aviation insurance market while aligning with the government’s local content objectives and meeting the expectations of international financiers.
Omosehin noted that the revised policy enables airlines to easily lease aircraft, enhancing their capacity to expand fleets and improve services. “This regulation will ultimately benefit Nigerians through lower airfares and better access to air travel”, he said.
He added that the initiative would also positively impact the nation’s Gross Domestic Product ,GDP, by fostering local capacity building and encouraging knowledge transfer within the insurance and aviation sectors.
A key feature of the reform is a provision allowing local insurers to cede up to 90% of aviation risk to international markets—down from a previous requirement to place 95% offshore. This compromise followed extensive consultations and is expected to ease access to insurance for aircraft leasing.
Minister of Aviation and Aerospace Development, Festus Keyamo ,SAN, lauded NAICOM’s efforts, describing the revised regulation as a step toward international best practices. “This is a thoroughly Nigerian solution that aligns with global standards”, he said, adding that the framework had gained acceptance among global stakeholders.
Dr. Adetayo John-Fisher, Managing Director of First Standard Insurance Brokers, emphasized that the regulation creates a more enabling environment for airline operators to bring aircraft into the country. He also noted its alignment with the Federal Government’s economic growth agenda.
Director-General of the Presidential Enabling Business Environment Council ,PEBEC, Princess Zahrah Audu, praised the collaboration among stakeholders and urged airline operators to improve service delivery in return.
Speaking on behalf of the Airline Operators of Nigeria ,AON, the Chairman of United Airlines welcomed the initiative and called for smooth implementation. Representatives from the Nigeria Civil Aviation Authority ,NCAA, and other key stakeholders were also in attendance.
