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The federal government has initiated new insurance regulations aimed at enhancing the operations of airlines operating in the country.
In a statement released on Monday by the Head of Press and Public Affairs at the Ministry of Aviation, Odutayo Oluseyi, the Minister of Aviation, Festus Keyamo, emphasised the government’s commitment to addressing the challenges faced by airline operators in Nigeria during the official launch of the “New Era of Insurance Regulation for Leased Aircraft in Nigeria” in Abuja.
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“In a quest to ensure ease of doing business and strengthen Airline Operators, Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, has stated that President Bola Tinubu led Federal Government is working round the clock to create enabling environment for Airline Operators in Nigeria to thrive thereby empowering Nigeria Aviation sector,” the statement noted.
Mr Keyamo explained that the federal government is doing a lot to ensure airline operators enjoy friendly insurance policies that would help the operators do their business with ease.
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‘’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, ” the minister said.
In recent years, Nigeria’s aviation sector has been grappling with a plethora of challenges that have continued to impact airline operations and travelling passengers negatively.
Some existing challenges include high operational costs due to FX scarcity, maintenance costs, taxes and levies.
Similarly, infrastructure-related issues such as unstable power supply, airport charges, and limited aircraft availability have continued to impede airline operations in the country amidst inconsistencies in regulatory policies and safety concerns.
New insurance era
On Monday, while flagging off the new era of insurance regulation, Mr Keyamo said the revised insurance regulations are expected to boost the aviation sector, improve Irrevocable Deregistration and Export Request Authorisation (IDERA).
He noted that this would allow local operators to cede up to 90 per cent of risk to international markets under certain conditions and that it would be in line with the Cape Town Convention, which is geared towards the acquisition and financing of aircraft.
The Minister commended the National Insurance Commission (NAICOM) for working assiduously to ensure the policy sees the light of day.
On his part, the Director General of Nigeria’s Civil Aviation Authority (NCAA), Chris Najomo, who was represented by the Director of Air Transport Regulation, Olayinka Babaoye, said the NCAA is passionate about the development and promised that the NCAA will do its best to support the policy.
Meanwhile, the Commissioner for Insurance and CEO National Insurance Commission (NAICOM), Olusegun 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’s Gross Domestic Product (GDP) and promote the stability of the aviation insurance market.
Mr Omosehin said the insurance policy is designed in line with Nigeria’s local content and the renewed hope agenda of President Bola Ahmed Tinubu, stating that aviation is a critical sector that propels the growth that Nigerians desire.
‘’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, ’’ he said.
Mr Omosehin said the agreed insurance regulation will go a long way in reducing the cost of air tickets in Nigeria, providing comfort to Nigerian airline operators, and restoring confidence among foreign investors.
The official called on all stakeholders to ensure proper implementation of the agreed-upon new insurance policy.
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In her remarks, Director-General, Presidential Enabling Business Environment Council (PEBEC), Zahrah Audu, assured Nigerians of the government’s willingness to formulate friendly policies to enhance business operations in Nigeria.
She admonished airline operators in Nigeria to treat customers amicably and avoid flight delay and cancellation.
In his reaction, Airline Operators of Nigeria’s Chairman, Obiora Okonkwo, stated that they are excited seeing the new insurance policy coming to bear. He said the policy would strengthen the aviation sector, retain more money among operators, and provide general services to Nigerians.
He said the aviation sector under President 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 Nigerian aviation
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