NAICOM revises aviation insurance regulation to allow airlines access more aircraft

The National Insurance Commission (NAICOM) and Festus Keyamo, the minister of aviation and aerospace development, have introduced a revised insurance regulation on leased aircraft to support airline operations and reduce airfares.

Speaking at the launch event in Abuja on Monday, Olusegun Omosehin, NAICOM commissioner for insurance, said the new regulation would help stabilise the aviation insurance market and align with the government’s focus on local content.

Omosehin said the regulation was structured to meet the expectations of both the government and international financiers, allowing local operators to acquire new aircraft more easily.

He noted that it would ultimately benefit Nigerians by lowering ticket costs and improving access to modern aircraft.

“This, we hope, will drop the cost of air travels in Nigeria because they can get more aircraft now with this agreement,” he said.

“We also believe that with the agreed insurance regulation, it will also give them (operators) some level of comfort in terms of securing this within a timeframe.

“With the right insurance framework, Nigeria’s aviation sector can overcome challenges, adapt to changes, and thrive in an ever-evolving landscape.”

Omosehin noted that one of the key concerns for airline operators had been the offshore insurance requirement, with about 95 percent of aircraft insurance previously demanded by international liaisons.

He said NAICOM had now approved a model that allows local operators to cede up to 90 percent of aviation insurance to international markets, while still retaining compliance with domestic regulations.

KEYAMO COMMENDS NAICOM FOR MAKING THE REGULATION A REALITY

Keyamo praised NAICOM for its efforts, saying the revised regulation reflects both Nigerian interests and global standards.

“What we have today is a complete Nigerian position that is also in tandem with what the world also expects,” Keyamo said.

“The official Working Group has looked at what they have done and have agreed with it. They have shared it with most of the businesses across the world and we have a complete revised insurance regulations on these aircraft in Nigeria.”

Adetayo John-Fisher, managing director of First Standard Insurance Brokers Limited, who spoke on behalf of the insurance industry, said the regulation would make it easier for operators to bring in aircraft and would help the federal government grow the economy.

On his part, Obiora Okonkwo, executive chairman of United Airlines, speaking for the Airline Operators of Nigeria (AON), said the implementation of the regulation should be seamless.

Zahrah Audu, director-general of the Presidential Enabling Business Environment Council (PEBEC), also commended the collaboration and called on airline operators to improve service delivery.