Nigeria Announces New Insurance Rules for Leased Aircraft
The Nigerian federal government has introduced new aircraft lease insurance regulations designed to align with the Cape Town Convention and improve access to aviation financing for local carriers. Aviation Minister Festus Keyama announced the changes on March 12 in Abuja, highlighting the administration’s commitment to enhancing investor confidence and aligning with international standards.
The revised policy allows Nigerian airlines to cede up to 90% of their insurance risk to international markets, under specific conditions. It also strengthens the use of the Irrevocable Deregistration and Export Request Authorisation (IDERA), which enables aircraft lessors and financiers to deregister and export aircraft without interference from local lessees.
Olusegun Ayo Omosehin, commissioner of the National Insurance Commission (NAICOM), said the reform is expected to stabilize the aviation sector, lower ticket prices, attract foreign investment, and contribute to Nigeria’s GDP growth.
Obiora Okonkwo, chairman of the Airline Operators of Nigeria (AON), praised the move, stating it would help retain revenue locally, improve airline operations, and make air travel more efficient for Nigerians.
Keyama has prioritized making aircraft leasing more accessible and affordable for Nigerian airlines. In September 2024, Nigeria adopted a legal framework for Cape Town Convention compliance and implemented a 24-hour IDERA processing rule. As a result, Nigeria’s compliance rating by the Aviation Working Group (AWG) rose from 49.5% to 75.5%.
The AWG, a global body composed of major aviation manufacturers, lessors, and financial institutions, promotes legal and policy frameworks to support aviation financing and leasing.
Related News: https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com