The Federal Government of Nigeria, through the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, has unveiled a revised insurance regulation aimed at easing aircraft leasing for Nigerian airlines. This landmark policy is expected to improve airline operations, increase fleet access, and ultimately reduce airfares for passengers.
At the official flag-off ceremony in Abuja, Minister of Aviation and Aerospace Development, Festus Keyamo, emphasized the government’s commitment to creating an investor-friendly environment that empowers local operators while aligning with international aviation standards. He noted that the revision addresses long-standing challenges in aircraft insurance, particularly the requirement by foreign lessors for international insurance coverage, which previously limited leasing options for Nigerian airlines.
The new regulation allows local operators to cede up to 90 percent of insurance risk to international markets under specified conditions, in line with the Cape Town Convention. It also encourages greater participation from Nigerian insurers, fostering local content development and market stability.
NAICOM Commissioner Olusegun Omosehin described the regulation as a transformative milestone that brings certainty and predictability to the aviation insurance market. He highlighted that the policy was developed through extensive consultations with key stakeholders including airline operators, insurers, financiers, and government agencies.
“The leasing of aircraft will give operators the advantage needed to procure new planes, enhancing Nigeria’s aviation sector and benefiting passengers through improved service and lower costs,” Omosehin said.
The Nigerian Civil Aviation Authority (NCAA) has also updated deregistration and export procedures for leased aircraft to protect lessors’ interests and encourage international leasing partnerships.
Princess Zahrah Mustapha Audu, Director-General of the Presidential Enabling Business Environment Council (PEBEC), praised the collaborative effort behind the policy and urged airlines to improve customer service by minimizing flight delays and cancellations.
Industry leaders, including the Chairman of the Airline Operators of Nigeria, welcomed the regulation as a positive step toward strengthening the sector, retaining more funds within the industry, and enhancing service delivery to Nigerians.
This regulatory reform is a critical step toward revitalizing Nigeria’s aviation industry by making it easier and more affordable for airlines to expand their fleets through leasing, thereby fostering growth, innovation, and competitiveness in the sector.
