Federal Government Launches New Insurance Regulation Framework for Leased Aircraft

Strategic Insights -

The Federal Government of Nigeria has introduced a new insurance regulation framework for leased aircraft, aimed at creating a more business-friendly environment for airline operators. The initiative is part of the administration's efforts to improve investor confidence, reduce operational costs, and align with International Aviation Standards under the Cape Town Convention. The Minister of Aviation and Aerospace Development, Festus Keyamo, unveiled the new framework, which is expected to boost the Aviation sector and improve Irrevocable Deregistration and Export Request Authorisation (IDERA). The framework allows local operators to cede up to 90% of risk to international markets under certain conditions.

Key Takeaways:

  • The Federal Government has launched a new insurance regulation framework for leased aircraft to create a more business-friendly environment for airline operators.
  • The initiative is aimed at improving investor confidence, reducing operational costs, and aligning with International Aviation Standards under the Cape Town Convention.
  • The revised insurance regulations are expected to boost the Aviation sector, improve Irrevocable Deregistration and Export Request Authorisation (IDERA), and allow local operators to cede up to 90% of risk to international markets under certain conditions.
  • The National Insurance Commission (NAICOM) has commendation from the Minister for working assiduously to ensure the policy sees the light of the day.
  • The policy is designed in line with Nigeria's local content and the Renewed Hope Agenda of President Bola Tinubu, and is expected to enhance Nigeria's Gross Domestic Product (GDP) and promote the stability of the Aviation insurance market.
  • The agreed insurance regulation is expected to reduce the cost of air ticket in Nigeria, give comfort to Nigeria Airline Operators, and restore confidence among foreign investors.

Statistics:

  • Up to 90% of risk can be ceded to international markets under certain conditions, in line with the Cape Town Convention on the Acquisition and Financing of Aircraft.
  • The insurance policy is designed in line with Nigeria's local content and the Renewed Hope Agenda of President Bola Tinubu.
  • The policy is expected to enhance Nigeria's Gross Domestic Product (GDP) and promote the stability of the Aviation insurance market.

Sources:

  • Odutayo Oluseyi, Head, Press and Public Affairs at the Ministry of Aviation and Aerospace Development
  • Festus Keyamo, Minister of Aviation and Aerospace Development
  • Chris Najomo, Director General, Nigeria Civil Aviation Authority (NCAA)
  • Olusegun Ayo Omosehin, Commissioner for Insurance and CEO National Insurance Commission (NAICOM)
  • Zahrah Mustapha Audu, Director-General, Presidential Enabling Business Environment Council (PEBEC)
  • Obiora Okonkwo, Chairman Airline Operators of Nigeria