The Federal Government of Nigeria has introduced a revised insurance regulation for leased aircraft, a move expected to reduce the cost of air travel and make aircraft acquisition more accessible to domestic airline operators. The new policy, launched through a collaboration between the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, was announced on Monday in Abuja by the Commissioner for Insurance, Mr Olusegun Omosehin, as reported by the News Agency of Nigeria (NAN).
“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 revised framework seeks to address longstanding challenges surrounding insurance in aircraft leasing. By relaxing previous restrictions on foreign insurance requirements and increasing the involvement of local insurers, the regulation is set to streamline the leasing process for Nigerian airlines.
Officials believe the reform will significantly improve the aviation sector’s operational efficiency and increase its contribution to national GDP. It is also seen as a strategic move to align Nigeria’s aviation industry with international standards, enhancing the country’s global credibility in the sector.
Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), described the initiative as a balanced national policy that also satisfies global aviation requirements. He has previously highlighted that many international lessors and aircraft manufacturers demand insurance coverage from the international market before allowing dry-leased aircraft to enter Nigeria—an issue this regulation seeks to resolve.
Dr Adetayo John-Fisher, Managing Director of First Standard Insurance Brokers Limited, praised the development, calling it a major step towards creating a more conducive environment for aircraft leasing in line with the federal government’s broader economic agenda.
Princess Zahrah Audu, Director-General of the Presidential Enabling Business Environment Council (PEBEC), applauded the collaboration between key stakeholders and underscored the need for improved airline service delivery.
Also weighing in, the Chairman of United Airlines, representing the Airline Operators of Nigeria (AON), urged that the new policy be implemented effectively to ensure it meets its intended objectives.
In addition to the new insurance rules, the Nigerian Civil Aviation Authority (NCAA) has updated procedures for deregistering and exporting leased aircraft. The updated framework, in accordance with the Cape Town Convention (CTC), includes the Procedure for the Recordation of Irrevocable Deregistration and Export Request Authorisation (IDERA), which simplifies the repossession process for aircraft owners, lessors, and financiers in cases of contractual default by operators.
The legal and procedural changes are designed to foster greater trust between Nigeria and the international leasing community, making it more attractive for global players to engage with the country’s aviation market.
Ultimately, the policy marks a significant shift aimed at reducing airfare prices by expanding local airlines’ fleets and promoting competition, while aligning Nigeria’s aviation regulations with global best practices.