The Federal Ministry of Aviation and Aerospace Development, in collaboration with the National Insurance Commission (NAICOM), has rolled out new insurance regulations for leased aircraft in the country.
The roll out followed the domestication of the Cape Town Convention and the Irrevocable De-registration and Export Request Authorization (IDERA) Advisory Circular to enhance aircraft leasing for domestic operators
The Minister of Aviation and Aerospace Development, Festus Keyamo, while speaking at the flag off of the new era of insurance Regulation for leased aircraft in Nigeria in Abuja, said that the Federal Government is doing a lot to ensure airline operators enjoy friendly insurance policies that would help the operators do their business with ease.
“We are proud of the progress made in enhancing the aviation ecosystem in Nigeria. Our focus is on investor-friendliness, empowering the local operators, ensuring compliance with international standards, and driving growth and development in the aviation industry,” he said.
He stated that the revised insurance regulations will boost the aviation sector, improve DERA, and allow local operators to cede up to 90 percent of risk to international markets under certain conditions in line with the Cape Town Convention, geared towards the acquisition and financing of aircraft.
The Minister commended the NAICOM for working assiduously to ensure the policy sees the light of day.
NAICOM Commissioner and CEO, Mr Olusegun Omosehin, while unveiling the insurance regulations stated that the milestone is a product of serious engagement with critical stakeholders including Airline Operators of Nigeria, Nigeria Insurance Association, Aviation working Group, Nigeria business community, Presidential Business Enabling Council (PEBEC) and the Minster of aviation who has been championing ease of doing business in the sector.
Omosehin stated that the regulation will promote stability of the Nigerian aviation insurance market as it is designed to align with the government’s desire in terms of local content, financials, and lessors, such that they can have a say where their insurance is placed.
“The leasing of aviation aircraft will give the operator the needed advantage required to procure new aircraft, which will ultimately be to the advantage of Nigeria, and also give them comfort in securing the aircraft within the time frame,” he stated.
Princess Zahrah Mustapha Audu, Director-General, Presidential Enabling Business Environment Council (PEBEC), assured Nigerians of the government’s willingness to formulate friendly policies that will enhance business operations in Nigeria.
She admonished Airline operators in Nigeria to treat customers amicably and avoid flight delays and cancellations.
Professor Obiora Okonkwo, Chairman of Airline Operators of Nigeria, stated that the AON is excited to see the new insurance policy, noting that the policy will strengthen the aviation sector, retain more funds among the operators, and provide general services to Nigerians.
He said the aviation sector under President Bola Tinubu generates more income for the country than before and urged the stakeholders to support the government in driving the policies.
