Aviation Sector Gets Boost as Nigeria Introduces New Insurance Policy for Leased Aircraft
Oru Leonard
The Federal Government of Nigeria has launched a new era of insurance regulation for leased aircraft in Nigeria, aimed at boosting the aviation sector and improving the business environment for airline operators. Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this during the flag-off ceremony in Abuja.
Keyamo disclosed that the Federal Government is doing a lot ensure airline operators enjoy friendly insurance policies that would help the operators do their businesses with ease.
‘’We are proud of the progress made in enhancing the aviation ecosystem in Nigeria, our focus is on investor-friendliness, empower the local operators, ensure compliance with international standards, and drive growth and development in the aviation industry”, he said.
The Minister commended the National Insurance Commission (NAICOM), for its efforts in ensuring the policy’s implementation.
Speaking, the Commissioner for Insurance and CEO National Insurance Commission (NAICOM) Mr. Olusegun Ayo Omosehin stated that the Commission did not only agree to pilot the process but to take ownership of the process.
He emphasised that the policy will enhance Nigeria Gross Domestic Product (GDP), and promote the stability of the aviation insurance market.
Mr Ayo said the insurance policy is designed in line with Nigeria local content and the renewed hope agenda of President Bola Ahmed Tinubu.
He said aviation is a critical sector to propel the growth which Nigerians desires.
‘’The leasing of aircraft will give the airline operators the needed advantage required in procuring more aircraft which will ultimately be to the advantage of Nigerians and other stakeholders’’
Mr Ayo said the agreed insurance regulation will go a long way reduce the cost of air ticket in Nigeria, give comfort to Nigeria Airline Operators and restore confidence among foreign investors and called on all stakeholders to ensure proper implementation of the agreed new insurance policy.
Director General, Nigeria Civil Aviation Authority (NCAA), Capt. Chris Najomo represented by Mrs Olayinka Babaoye, Director, Air Transport Regulation said NCAA is passionate about the development and promised that NCAA will do all her best to support the policy.
Princess Zahrah Mustapha Audu , Director-General, Presidential Enabling Business Environment Council (PEBEC), assured Nigerians of the government willingness to formulate friendly policies that will enhance business operation in Nigeria.
Professor Obiora Okonkwo Chairman Airline Operators of Nigeria, stated that the AON is excited seeing the new insurance policy coming to bear, noting that the police will strengthen the aviation sector, retain more money among the operators and provide general services to Nigerians.
He said the aviation sector under President Bola Ahmed Tinubu generates more income for the country than before and urged the stakeholders to continue to support the government to drive all policies that will put to rest the challenges facing Nigeria aviation
The revised regulations allow local operators to cede up to 90% of risk to international markets under certain conditions, in line with the Cape Town Convention.
The policy is expected to enhance Nigeria’s Gross Domestic Product (GDP), promote stability in the aviation insurance market, and reduce the cost of air tickets.
