FG, NICOM adopt insurance policy to boost investment

The Federal Ministry of Aviation and Aerospace Development has entered into a partnership with the National Insurance Commission (NICOM) to improve investment potential in the aviation industry.

Speaking on Monday in Abuja while hosting the NICOM Commissioner for Insurance, the Minister of Aviation and Aerospace Development, Festus Keyamo, said, “Since we came to office, we have done our best to develop policies that will make the entire aviation ecosystem in Nigeria more investor-friendly.

“Our focus is to empower our local operators to ensure that the ease of doing business is very much enhanced in Nigeria, especially given the conditions under which we operate.

“We have done all we have to do regarding the Cape Town Convention and its applicability to our aviation ecosystem. The world is happy with us, and right now, we are having the highest score in Africa in terms of compliance with the Cape Town Convention.

“We have also gone ahead to tweak our IDERA to also meet global standards. Today, IDERA is one of the best also in Africa. But beyond that, we have also had this problem of insuance on dry-leased aircraft in Nigeria”.

He explained that the world expects that “we place the risk in international markets, because all the while they raise concerns about the capacity of our local markets.

“We did a lot of international shuttle diplomacy. Together with the Commissioner of NICON, who is here present, members of the AON and various stakeholders, we engaged a lot of international stakeholders also on this matter.

“This handshake between aviation and insurance has never happened in this country before. We have the history of working in silence, as if we are fighting ourselves. This is the first time that we have come together, and the Commissioner has been extremely industrious and helpful on this.

“He went to the international stage with us and made a case for the Nigerian markets in such a way that I could never have done. And he took the burden of aviation. And so, since then, after our return from Dublin, he rolled up his sleeves and continues his engagement with stakeholders and financiers across the world”.

Keyamo stated that “today we have a completely revised insurance regulation on leased aircraft in Nigeria, which is the official Nigerian position,” he reaffirmed.

Also speaking, the Commissioner for Insurance, Olusegun Ayo Omosehin, said, “Today is a significant day in Nigeria. Today, we are celebrating a significant milestone for the aviation sector, which is a product of serious engagement between all critical stakeholders in the sector.

“The Airline Operators of Nigeria (AON), the Nigeria Insurance Association, the Aviation Working Group, the Nigerian Business Community, the Presidential Navy Business Council, and my Honorable Minister, who has been an added champion of the ease of doing business, especially as it relates to the aviation sector.

“The National Insurance Commission not only agreed to pilot this process, but took charge and took ownership of the process, for two reasons; One, we believe that the benefit can only be for Nigeria and Nigerians, and also the fact that whatever we are doing must reflect in our Gross National Product (GDP.).

“Secondly, I must also commend the Airline Operators of Nigeria for their diligence and their passion of pushing through what we have as the right enabling environment for aviation business in Nigeria”.

He stated further that today, “we are celebrating a milestone that would promote what I call the stability of the aviation insurance market.

“The regulation is designed in such a way that the insurance market aligns both with the desire of the government, in terms of local content, and also the agenda of the reserves and financiers in terms of putting their eyes where their money is, and being able to have a say in where the insurances are placed. So it’s a win-win for everybody.

“The leasing of aviation aircraft will give the operators the needed advantage required in terms of being able to procure new aircraft, which will ultimately be to the advantage of Nigerians. This, we hope, will drop the cost of air travel in Nigeria, because they can get more aircraft now with this agreement.

“We also believe that with the agreed insurance regulation, it will also give them some level of comfort in terms of securing this insurance within a timeframe. On this note, I would like to say we look forward to working with all our stakeholders for the successful implementation of this new regulation. We hope it will lead to the growth and development of insurance in Nigeria,” he stated.

Omosehin assured that “we will be able to attract more investment and create opportunities for Nigerians. This is also based on our firm belief that with the right insurance framework, the Nigerian aviation sector can overcome all of the current challenges we have and adapt to all the changes in our environment and thrive in this evolving landscape.”

On his part, the spokesperson for Airline Operators of Nigeria (AON), Prof. Obiora Okonkwo, commended the government for the initiative, stating that it will enhance investment opportunities in the sector for the country.

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