In a concerted effort to boost the Nigerian aviation sector and create a business-friendly environment, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN, has reiterated the commitment of President Bola Tinubu’s administration to resolving the challenges facing airline operators in the country.
Speaking during the official flag-off of the “New Era of Insurance Regulation for Leased Aircraft” at his office in Abuja, Keyamo stated that the Federal Government is working tirelessly to ease operations for local airlines, particularly by revising insurance frameworks to be more accommodating and investor-friendly.
“We are proud of the progress made in enhancing the aviation ecosystem in Nigeria,” Keyamo said. “Our focus is on making the sector more investor-friendly, empowering local operators, ensuring compliance with international standards, and driving growth and development. The goal is to ensure that our aviation sector is not just competitive, but also resilient and sustainable.”
The revised insurance policy, he explained, is expected to support airline operators by reducing insurance burdens and aligning with global best practices. One of its key features is the improvement of Irrevocable Deregistration and Export Request Authorisation (IDERA) compliance, which will allow local operators to cede up to 90 per cent of their insurance risk to international markets under specific conditions. This move is consistent with the Cape Town Convention on aircraft financing and leasing, which Nigeria is a signatory to.
Keyamo commended the National Insurance Commission (NAICOM) for spearheading the initiative and ensuring its successful rollout. He praised the collaborative effort between aviation and insurance stakeholders in bringing the policy to life, describing it as a game changer for the industry.
Representing the director-general of the Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo, director of air transport regulation, Olayinka Babaoye expressed the agency’s full support for the new insurance policy. “We are passionate about the growth of the aviation sector,” she said. “NCAA will continue to support all policies that contribute to safety, efficiency and growth.”
In his remarks, the commissioner for insurance of NAICOM, Olusegun Omosehin emphasised that the commission is not only piloting the initiative but has taken full ownership of it. He noted that the revised policy will enhance Nigeria’s Gross Domestic Product (GDP) and stabilise the aviation insurance market.
“This policy is aligned with the government’s local content drive and President Tinubu’s ‘Renewed Hope’ agenda,” Omosehin said. “Aviation is a critical enabler of national development and through strategic leasing arrangements, operators can expand their fleets and services, which will ultimately benefit all Nigerians.”
He added that the new regulation could lead to a reduction in airfares, boost investor confidence, and restore the competitiveness of Nigerian airlines. He called on all stakeholders to ensure proper implementation of the new policy for maximum impact.
Also speaking, director-general of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Audu reaffirmed the government’s resolve to create policies that facilitate ease of doing business. She encouraged airline operators to improve customer service and minimize flight delays and cancellations.
Chairman of the Airline Operators of Nigeria (AON), Prof. Obiora Okonkwo expressed optimism about the new insurance framework. He said the policy would help retain more financial resources within the country, strengthen airline operations and enhance service delivery.
“The aviation sector is already witnessing improved performance under President Tinubu’s leadership,” he said. “We must continue to support reforms that resolve long-standing challenges in our industry.”
With the rollout of this new insurance policy, stakeholders believe the aviation sector is poised for a transformative leap that will benefit operators, passengers, and the broader Nigerian economy.
