The Nigerian federal government has announced revised insurance regulations for leased aircraft that align with the Cape Town Convention to ease aircraft financing for local airlines.
Aviation Minister Festus Keyama said in a statement that the revised policy allows local operators to cede up to 90% of insurance risk to international markets under certain conditions and improves Irrevocable Deregistration and Export Request Authorisation (IDERA). The latter allows lessors and financiers to request the deregistration and export of an aircraft from a country without interference from the lessee.
Announcing the revised regulations in Abuja on March 12, Keyama emphasised the current administration's focus on investor friendliness, compliance with international standards, and support for local aviation growth.
According to Olusegun Ayo Omosehin, commissioner of the National Insurance Commission (NAICOM), the move is also expected to enhance industry stability, lower airfares, attract foreign investment, and ultimately boost Nigeria’s gross domestic product (GDP).
Obiora Okonkwo, chairman of the Airline Operators of Nigeria (AON), welcomed the revised regulations, highlighting the potential to strengthen the aviation sector, retain more revenue locally, and improve services for Nigerians.
Keyama has been working to make it easier and more affordable for Nigerian airlines to expand their fleets. Under his leadership, Nigeria signed a legal practice direction for compliance with the Cape Town Convention in September 2024 and agreed to a 24-hour turnaround of IDERA. This resulted in Nigeria's compliance status rising from 49.5% to 75.5% as rated by the Aviation Working Group (AWG), a legal entity comprised of major aviation manufacturers, lessors, and financial institutions that contribute to the development of policies, laws, and regulations that facilitate international aviation financing and leasing.
