Federal government unveils new insurance policy for airline operators | The Guardian Nigeria News

The federal government has commenced a revised insurance regulation for leased aircraft to enhance easy operations of airline business in the country.

The new policy, launched through a collaboration between the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, aims to reduce the cost of air travel and make aircraft acquisition more accessible to domestic airline operators.

This laudable step was announced Monday in Abuja by the Commissioner for Insurance, Mr. Olusegun Omosehin.

The Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), described the initiative as a balanced national policy that meets global aviation standards. He previously pointed out that many international lessors and aircraft manufacturers require insurance coverage from the international market before permitting dry-leased aircraft to operate in Nigeria.

According to Omosehin, the revised framework seeks to address longstanding challenges surrounding insurance in aircraft leasing for local operators. He added that the regulation is set to streamline the leasing process for Nigerian airlines, hence the need to relax previous restrictions on foreign insurance requirements and increase the involvement of local insurers.

“The National Insurance Commission (NAICOM) and the Minister of Aviation and Aerospace Development have unveiled the Revised Insurance Regulation on Leased Aircraft to boost airline operations. Leasing aircraft gives operators the leverage to acquire new planes, which ultimately benefits Nigerian passengers,” the statement read.

The initiative is seen as a strategic plan to align Nigeria’s aviation industry with international standards, enhancing the country’s global credibility in the sector.

Besides, the Nigerian Civil Aviation Authority (NCAA) has updated procedures for deregistering and exporting leased aircraft, aligning with the Cape Town Convention (CTC). This includes the new Procedure for the Recordation of Irrevocable Deregistration and Export Request Authorisation (IDERA), which simplifies aircraft repossession in cases of operator default.

Officials present at the unveiling believe the reform will significantly improve the aviation sector’s operational efficiency and increase its contribution to national GDP.