By Henry Uche
The National Insurance Commission (NAICOM) has officially launched the Revised Regulation on Insurance for Leased and Financed Aircrafts. This development is set to attract more investors, strengthen Nigeria’s aviation and insurance industries, enhance investor confidence, and promote ease of doing business in the country.
The unveiling ceremony, held at the Office of the Minister of Aviation, highlights the efforts between NAICOM, the Federal Ministry of Aviation and Aerospace Development and key stakeholders.
Commissioner for Insurance, Mr. Olusegun Omosehin, described the regulation as a transformative framework that will foster certainty, predictability, and stability in the aviation insurance market.
A statement from NAICOM confirmed that the revised regulation is the result of extensive consultations with industry players, including aviation operators, insurers, international financiers, and lessors. Mr. Omosehin emphasised that the new framework would liberalize insurance requirements, boost industry capacity, and reassure the global aviation market of Nigeria’s commitment to global standards.
The Commissioner who expressed gratitude to the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, and the Presidential Enabling Business Environment Council (PEBEC), for their roles in driving the reform forward, also acknowledged the Nigerian Insurers Association (NIA), Airline Operators of Nigeria (AON), and other industry stakeholders for their collaborative input.
With this regulation, Nigeria’s aviation sector is set for growth, innovation, and investment.
As Mr. Omosehin noted, “With the right insurance framework, Nigeria’s aviation sector can overcome challenges, adapt to changes, and thrive in an ever-evolving landscape.” This revised regulation signals Nigeria’s readiness to attract aviation business and soar to new heights.
“This marks a significant milestone in promoting a stable and sustainable aviation insurance market and a testament to this administration’s commitment to creating an enabling environment that fosters growth, investment, and development in Nigeria.
“Today signals the beginning of a revolution in the aviation sector. A turning point in aviation leasing and financing to Nigerian Aviation operators. This is clearly in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu in ensuring the Ease of Doing Business and Access to Capital” NAICOM boss said in a remark.
He continued “NAICOM in collaboration with the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has chosen a path that strikes a balance between facilitating insurance business operations and enhancing infrastructural development. We have created a framework that promotes certainty, stability, predictability and confidence in aircrafts financing and the required protection for those huge assets through a carefully designed national mechanisms.
“By providing clarity and certainty, we are sending a strong signal to investors and operators that Nigeria is open for business and committed to creating a conducive environment for growth in the aviation sector. The Nigerian insurance industry is adequately regulated, and the Commission enforces Prudential requirements that ensures sound underwriting. Also, liberalization of requirements for leased and financed aircrafts is to further assure the international market that the Aviation market in Nigeria exhibits growing capacity with significant increase in market exposure and support for healthy spreading of risks.”
NAICOM chief stressed that with the launch, the Commission is committed to an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.
He added that NAICOM looks forward to working with all stakeholders to ensure its successful implementation in ways that enhance growth and development, as well as attract investment, and create opportunities for Nigerians. “This is anchored on our firm believe that with the right insurance framework, Nigeria’s aviation sector can overcome challenges, adapt to changes, and thrive in an ever-evolving landscape. Let us work together to harness the full potential of our aviation sector and drive economic growth and development of the Nigerian Nation” he urged.