Airfares are expected to drop soon following the decision of the Federal Government, through the National Insurance Commission (NAICOM) and the Ministry of Aviation and Aerospace Development, to revise insurance regulation on leased aircraft.
Olusegun Omosehin, the NAICOM Commissioner for Insurance, announced the development on Monday in Abuja.
The move aims to make aircraft more accessible for airline operators and help reduce airfares in Nigeria.
“The National Insurance Commission (NAICOM) and the Minister of Aviation and Aerospace Development have unveiled the Revised Insurance Regulation on Leased Aircraft to boost airline operations.
“Leasing aircraft gives operators the leverage to acquire new planes, which ultimately benefits Nigerian passengers,” the source read in part.
He explained that the new regulation aims to fix long-standing issues with insurance for leased aircraft by relaxing foreign insurance rules and boosting local insurer involvement, making it easier for Nigerian airlines to lease planes.
The initiative is expected to boost the aviation sector’s contribution to GDP by improving operational efficiency. It also reflects Nigeria’s commitment to aligning with international aviation standards, strengthening its global reputation in the sector.
The policy is expected to lower air travel costs by making it easier for airlines to lease aircraft. Airlines will be able to expand their fleet if there are more flexible insurance rules.
NAN