The Federal Government of Nigeria, through the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, has introduced a revised insurance regulation specifically tailored for leased aircraft. The announcement was made in Abuja by NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, as reported by the News Agency of Nigeria (NAN).
The main objective of this policy is to make aircraft leasing more accessible for Nigerian airline operators, thereby helping to reduce the high cost of air travel in the country. Mr. Omosehin explained that the updated regulation addresses longstanding insurance challenges faced by local airlines when leasing aircraft. By easing restrictions on foreign insurance requirements and encouraging greater participation from local insurance providers, the policy aims to simplify aircraft leasing and enhance operational capacity within the aviation sector.
According to the Commissioner, this development is expected to enhance the contribution of aviation to the national economy by improving operational efficiency and aligning the country’s aviation standards with global best practices.
Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), described the policy as a balanced approach that meets both national needs and international regulatory expectations. Dr. Adetayo John-Fisher, Managing Director of First Standard Insurance Brokers Ltd, praised the initiative, stating that it creates a more enabling environment for aircraft leasing in line with Nigeria’s economic growth agenda.
Princess Zahrah Mustapha Audu, Director-General of the Presidential Enabling Business Environment Council (PEBEC), emphasized the importance of continued collaboration among stakeholders and called for improvements in airline service delivery. Chairman of United Airlines, representing the Airline Operators of Nigeria (AON), welcomed the policy but stressed the need for proper and effective implementation to ensure its success.
Legal framework
In a statement earlier this year, Minister Keyamo pointed out that international aircraft lessors and manufacturers typically demand insurance policies from global markets, often excluding local Nigerian insurers from such deals. This has historically made it difficult for Nigerian airlines to meet leasing requirements, particularly for dry-leased aircraft.
To improve investor confidence, the Nigerian Civil Aviation Authority (NCAA) has revised procedures for deregistering and exporting leased aircraft in compliance with the Cape Town Convention (CTC). These updates, including the implementation of the Irrevocable Deregistration and Export Request Authorization (IDERA) process, simplify aircraft repossession by owners and financiers when operators default on contracts.
Expected impact
The revised insurance framework is part of a broader effort to revitalize Nigeria’s aviation industry. By streamlining the leasing process and involving local insurers, the policy will help airlines expand their fleets and improve passenger services. It also demonstrates Nigeria’s commitment to fostering international partnerships and regulatory alignment, ultimately enhancing the country’s reputation in global aviation.