…we are addressing all aviation challenges – Keyamo
The Federal Government has launched a new insurance regulation framework for leased aircraft, aimed at creating a more business-friendly environment for airline operators.
According to a statement signed by Odutayo Oluseyi, Head, Press and Public Affairs at the Ministry of Aviation and Aerospace Development, the initiative, unveiled by Festus Keyamo, Minister of Aviation and Aerospace Development, underscored administration’s commitment to improving investor confidence, reducing operational costs, and aligning with International Aviation Standards under the Cape Town Convention.
The Minister, who made this known in his Office in Abuja during the official flag-off ceremony of New Era of Insurance Regulation for Leased Aircrafts in Nigeria, said that the Federal Government was doing a lot to 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.
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While flagging off the new era of insurance regulation, Keyamo said the revised insurance regulations are expected to boost the Aviation sector, improve Irrevocable Deregistration and Export Request Authorisation (IDERA), allow local operators to cede up to 90% of risk to international markets under certain conditions and in line with the Cape Town Convention which gears towards acquisition and financing of aircraft.
The Minister commended the National Insurance Commission (NAICOM) for working assiduously to ensure the policy see the light of the day.
Chris Najomo, Director General, Nigeria Civil Aviation Authority (NCAA), represented by Olayinka Babaoye, Director Air Transport Regulation, said NCAA is passionate about the development and promised that NCAA would do all her best to support the policy.
Earlier, Olusegun Ayo Omosehin, the Commissioner for Insurance and CEO National Insurance Commission (NAICOM), stated that the Commission did not only agree to pilot the process but also to take ownership of the process.
He emphasised that the policy would enhance Nigeria Gross Domestic Product (GDP) and promote the stability of the Aviation insurance market.
Ayo said the insurance policy was designed in line with Nigeria local content and the Renewed Hope Agenda of President Bola Tinubu. He also said Aviation is a critical sector to propel the growth which 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 added.
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Ayo added that the agreed insurance regulation would 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.
Zahrah Mustapha Audu, Director-General, Presidential Enabling Business Environment Council (PEBEC), assured Nigerians of the Government’s willingness to formulate friendly policies that would enhance business operation in Nigeria.
She admonished Airline operators in Nigeria to treat customers amicably and avoid flight delay and cancellation.
Obiora Okonkwo, Chairman Airline Operators of Nigeria, stated that the AON was excited seeing the new insurance policy coming to bear, noting that the policy would strengthen the Aviation sector, retain more money among the operators and provide general services to Nigerians.
He said the Aviation sector under President Bola Tinubu generates more income for the country than before, urging the stakeholders to continue to support the Government to drive all policies that would put to rest the challenges facing Nigeria Aviation.
