In a strategic move to reposition Nigeria’s aviation sector and boost investor confidence, the Minister of Aviation and Aerospace Development, Festus Keyamo, has launched a revised aviation insurance policy aimed at facilitating aircraft financing and strengthening the capacity of local airline operators.
The announcement was made on Monday through an official statement signed by the Ministry’s spokesperson, Odutayo Oluseyi. According to the statement, the new policy aligns with the Cape Town Convention, an international framework that facilitates aircraft acquisition and financing by minimizing risks for lenders and lessors.
Keyamo said the revised policy marks a new era in Nigeria’s aviation regulatory landscape, particularly in its ability to simplify aircraft lease agreements and enhance Irrevocable Deregistration and Export Request Authorisation (IDERA) processes — crucial mechanisms that allow lessors to repossess aircraft in the event of default.
“Our focus is on creating an investor-friendly climate, empowering local operators, ensuring compliance with global standards, and driving sustainable growth in the aviation industry,” Keyamo stated.
Under the new policy, Nigerian airline operators can now cede up to 90% of aviation-related insurance risks to international markets under certain conditions. This development is expected to reduce operational risks, improve aircraft leasing terms, and ultimately lower the cost of airline operations.
The Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Olusegun Omosehin, expressed full support for the policy, stating that the commission is not only piloting the initiative but has taken ownership of it. Omosehin highlighted that the new approach would significantly boost Nigeria’s Gross Domestic Product (GDP) and bring much-needed stability to the aviation insurance market.
“This policy will enable airline operators to procure more aircraft, which translates to greater connectivity, improved services, and reduced airfares for Nigerians,” he noted.
The Director-General of the Presidential Enabling Business Environment Council (PEBEC), Zahrah Audu, also lauded the development, assuring stakeholders of the government’s commitment to business-friendly reforms across sectors. She emphasized the need for airline operators to match these reforms with enhanced service delivery by reducing flight delays and cancellations, thereby improving customer satisfaction.
Professor Obiora Okonkwo, Chairman of the Airline Operators of Nigeria (AON), voiced strong support from the private sector. He described the policy as a “turning point” that would enable operators to retain more revenue within the country and reinvest in infrastructure and services.
“The new insurance structure will not only enhance our competitiveness but also restore confidence among foreign investors,” Okonkwo said, adding that the sector is already seeing positive shifts under President Bola Tinubu’s administration.
Industry experts believe the revised policy will encourage long-term investment in Nigeria’s aviation sector, improve aircraft financing terms, and foster a more resilient operational environment. The inclusion of IDERA compliance and higher international reinsurance limits positions Nigeria as a more trustworthy hub for global aviation partnerships.
The development comes amid renewed government efforts to revive the aviation sector, which has faced numerous challenges in recent years, including high operational costs, limited access to foreign exchange, and an ageing aircraft fleet.
Keyamo’s reform agenda, underlined by this insurance overhaul, is expected to pave the way for safer, more affordable, and investor-friendly air travel in Nigeria.
As the global aviation landscape evolves, stakeholders are optimistic that Nigeria is now better positioned to tap into the multi-billion-dollar aviation financing market, attract top-tier aircraft lessors, and offer world-class air services to millions of passengers.