Aviation, Insurance Team Up to Unlock Aircraft Leasing in Nigeria

In a landmark development for Nigeria’s aviation sector, collaborative efforts between the Ministry of Aviation and Aerospace Development and the National Insurance Commission (NAICOM) have led to a significant boost in the leased and financed aircraft market, following a sweeping overhaul of insurance regulations.

For years, Nigerian airlines struggled to secure favorable leasing and financing terms due to unclear insurance provisions and a lack of confidence from international lessors. The situation often left operators with outdated fleets and limited access to competitive aircraft deals.

However, that narrative is changing—rapidly.

The defining moment came when Aviation Minister, Festus Keyamo SAN, and Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, initiated a joint reform agenda aimed at harmonizing aviation insurance frameworks and aligning them with international standards. Their shared goal: to eliminate regulatory ambiguities, build trust with global partners, and enhance Nigeria’s competitiveness in aircraft leasing.

The turning point came at the 4th Chinet Aviacargo Conference 2024, where key stakeholders from the aviation, insurance, and regulatory sectors engaged in frank discussions on how to improve safety and attract investment in Nigeria’s aviation industry. The outcome was a strategic alignment between the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, and the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo SAN. Both officials pledged to overhaul aviation insurance policies to meet international standards.

The conference, convened by aviation and travel expert Ikechi Uko, served as a catalyst for the breakthrough, highlighting the power of cross-sector dialogue in driving reform.

The result is a revamped insurance regulatory regime that includes:

• Clearly defined parameters for insuring leased and financed aircraft
• Stronger reinsurance requirements backed by international reinsurers
• Streamlined coordination between NAICOM and the Nigerian Civil Aviation Authority (NCAA)
• Capacity-building initiatives for local insurance underwriters

These reforms have significantly improved Nigeria’s profile in the global aviation finance ecosystem. Aircraft leasing firms, previously hesitant to engage with Nigerian carriers, are now returning with renewed confidence. Airlines are securing better lease terms, upgrading their fleets, and expanding routes.

“This reform didn’t happen by chance,” said an executive at one of Nigeria’s leading airlines. “It was the product of focused leadership and strategic collaboration. The partnership between aviation and insurance regulators has broken down barriers that held this industry back for years.”

Insurance companies are also stepping up, offering tailored products specifically designed for lease-backed financing. This innovation is driving down insurance costs and improving the risk profile of local operators.

Industry experts believe the reforms will have a ripple effect—enhancing safety, increasing capacity, attracting foreign investment, and positioning Nigeria as a regional aviation hub.

As the sector reflects on this milestone, stakeholders agree on one key takeaway: when government institutions collaborate with purpose and clarity, reform becomes not only possible but transformational.