How implementation of insurance policy may cut cost of airfare in Nigeria — Keyamo

There are indications that the cost of airfare in Nigeria may reduce when the newly unveiled revised insurance regulation on leased aircraft in Nigeria fully takes effect.

The Federal Ministry of Aviation and Aerospace Development, in partnership with the National Insurance Commission (NAICOM), recently unveiled the policy in Abuja.

At the event, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the policy will make it possible for airline operators to purchase new aircraft.

The Minister explained that the insurance policy will pave the way for airline companies to bring in many aircraft, opening up the market and creating more competition.

According to him, “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 driving growth and development in the aviation industry.”

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 percent of risk to international markets under certain conditions and it is 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 sees the light of day.

Also speaking at the event, the Commissioner for Insurance and CEO National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, stated that the agreed insurance regulation will go a long way to reduce the cost of air tickets in Nigeria, give comfort to Nigerian airline Operators and restore confidence among foreign investors.

He therefore called on all stakeholders to ensure proper implementation of the agreed-upon new insurance policy.

Ayo reassured that the Commission not only agreed to pilot the process but also to take ownership of the process.

The commissioner emphasised that the policy will enhance Nigeria’s Gross Domestic Product (GDP) and promote the stability of the aviation insurance market.

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