By Nnasom David

In a groundbreaking move aimed at enhancing investor confidence in Nigeria’s aviation sector, the Federal Government has partnered with the National Insurance Commission (NAICOM) to adopt a revised insurance policy tailored to leased aircraft.

Speaking on Monday in Abuja, Minister of Aviation and Aerospace Development, Festus Keyamo, announced the collaborative initiative during a courtesy visit by the Commissioner for Insurance, Olusegun Ayo Omosehin.

Keyamo described the new policy as a historic step toward transforming the aviation ecosystem, particularly in creating a more investor-friendly environment.

“Since we came to office, we have done our best to develop policies that will make the entire aviation ecosystem in Nigeria more investor-friendly,” he said. “Our focus is to empower our local operators to ensure that the ease of doing business is very much enhanced in Nigeria.”

The Minister highlighted strides made under the current administration, including Nigeria’s top ranking in Africa for compliance with the Cape Town Convention. He also noted adjustments to the Irrevocable Deregistration and Export Request Authorisation (IDERA) to meet international standards.

However, Keyamo admitted that insurance challenges on dry-leased aircraft had remained a sticking point until now. “We did a lot of international shuttle diplomacy… and the Commissioner of NICON, who is here present, made the case for the Nigerian markets in such a way that I could never have done,” he stated.

He praised the insurance chief’s efforts, saying, “This handshake between aviation and insurance has never happened in this country before… Since our return from Dublin, he rolled up his sleeves and continued engagements with stakeholders and financiers across the world.”

Keyamo confirmed that the revised regulation on leased aircraft insurance now represents Nigeria’s official stance and aligns with international best practices.

Commissioner for Insurance, Olusegun Omosehin, described the development as a significant milestone for both the aviation and insurance industries.

“Today, we are celebrating a significant milestone for the aviation sector, which is a product of serious engagement between all critical stakeholders,” Omosehin said.

He acknowledged the Airline Operators of Nigeria (AON), Nigeria Insurance Association, and other industry players, stating, “The National Insurance Commission not only agreed to pilot this process but took charge and took ownership… because the benefit can only be for Nigeria and Nigerians.”

Omosehin noted that the new regulation is built to stabilize the aviation insurance market, balancing the government’s local content agenda with the expectations of international lessors and financiers.

“The leasing of aviation aircraft will give the operators the needed advantage… This, we hope, will drop the cost of air travel in Nigeria,” he said. “We also believe that the agreed insurance regulation will give them comfort in securing insurance within a timeframe.”

He added that the new policy would attract investment, foster growth, and provide more opportunities for Nigerians. “With the right insurance framework, the Nigerian aviation sector can overcome all of the current challenges and thrive in this evolving landscape,” he assured.

Also speaking, spokesperson for the Airline Operators of Nigeria (AON), Prof. Obiora Okonkwo, applauded the government and NAICOM for their foresight and dedication to reforming the industry.

“This is a commendable step that will unlock investment opportunities and improve the business environment for operators,” Okonkwo said.