The Federal Government has directed the Ministry of Aviation and Aerospace Development to begin the process of insuring aircrafts operated by Nigerian airlines as part of efforts to meet international standards and attract foreign investors to the sector.
This announcement was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, in Abuja on Wednesday, during a stakeholders’ engagement meeting focused on insurance in the aviation industry.
Keyamo revealed that the initiative was a direct result of an instruction from Vice President Kashim Shettima, who emphasized the importance of ensuring that aircraft operated by Nigerian airlines are adequately insured.
According to Keyamo, the move will help create a more conducive business environment, which is essential for attracting foreign investment into the country’s aviation sector.
“Vice President Kashim Shettima instructed the ministry to commence the process and ensure that the aircrafts operating in Nigeria by Nigerian airlines are insured, as this will create a more conducive environment for doing business and attract foreign investors,” Keyamo said.
At the conclusion of the meeting, the minister expressed his gratitude for the contributions made by various stakeholders, including the leadership of the National Assembly, Airline Operators of Nigeria (AON), and the Nigerian Insurance Commission (NICON). He noted that their inputs helped in fostering better understanding and collaboration between all parties.
“We had a very, very robust discussion. I am very grateful to the leadership of the National Assembly on insurance. They were here, and they actually provided useful support and guidance to all of us regarding how they are also thinking.
The Airline Operators of Nigeria (AON), also spoke their minds. The Nigerian Insurance Commission (NICON), spoke their mind and I think we are beginning to understand ourselves,” Keyamo said. He further stated that a resolution had been reached to continue engagement on the issue.
The ministry, along with the AON and NICON, will also seek international resources and financial expertise to better understand the capacity of the sector and how it can contribute to rebranding Nigeria’s image globally.
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“There is a need for the AON, NICON to further engage international resources and finances to understand their position and their capacity. The capacity they have is part of the rebranding of the Nigerian image to the world, and every sector in Nigeria has a duty to rebrand and let the world understand how we are and what we are capable of,” the minister added.
In her remarks, the newly appointed Minister of Industry, Trade, and Investment, Jumoke Oduwole, who previously headed the Presidential Enabling Business Environment Council (PEBEC), stressed that the process of insuring aircrafts would help unlock the economy and significantly boost the aviation business.
“This process will unlock the economy and boost the aviation business. I am committed to supporting this process, even in my more strategic position as the minister of Industry, Trade, and Investment,” Oduwole said.
Senator Mukah Adetokunbo, the Chairman of the Senate Committee on Banking and Insurance, also weighed in on the issue, noting that the timing of the initiative was crucial. He emphasized the need for careful deliberation to ensure that all stakeholders’ interests are addressed before the full implementation of the insurance process.
“This is coming at the right time, and the ministry must ensure that all interests are balanced and sorted out before implementing the process,” Senator Adetokunbo stated.
The move is seen as a key step toward modernizing Nigeria’s aviation industry and ensuring that it is competitive on the global stage while addressing critical concerns around safety, liability, and investor confidence.
