The Federal Government of Nigeria has initiated a significant regulatory reform aimed at strengthening the country’s aviation sector, with a focus on enhancing aircraft leasing and insurance practices. The new policy framework is designed to improve the ease of doing business for local airline operators and support the broader modernisation of the aviation ecosystem.
Introduced by the Ministry of Aviation and Aerospace Development, the new insurance regulations are expected to boost the aviation sector, improve Irrevocable Deregistration and Export Request Authorisation (IDERA), allows local operators to cede up to 90 percent of risk to international markets under certain conditions and it is in line with the Cape Town Convention which gears towards acquisition and financing of aircraft.
This development forms part of President Bola Ahmed Tinubu’s Renewed Hope agenda, which prioritises investor confidence, local operator empowerment, and regulatory alignment with international standards. The insurance reform is expected to reduce operational costs for Nigerian carriers, facilitate the procurement of additional aircraft, and make the market more attractive to foreign investors. The long-term outcome is intended to be a more competitive sector with broader access to financing and lower airfares for passengers.
The policy is the result of collaboration between the Ministry, the Nigeria Civil Aviation Authority (NCAA), the National Insurance Commission (NAICOM), and the Presidential Enabling Business Environment Council (PEBEC). It reflects a shared goal to increase aviation’s contribution to Nigeria’s Gross Domestic Product and stabilise the local insurance market.
In parallel, stakeholders across the sector have expressed support for the reforms and highlighted the importance of implementation to ensure the benefits are fully realised. Airline operators stand to gain from improved risk management, better access to aircraft, and increased retention of value within the local industry.
The government has also emphasised the need for airline operators to play their part by prioritising customer service, minimising delays and cancellations, and supporting policy implementation efforts.
With Nigeria’s aviation sector undergoing broader transformation—including infrastructure investment and regulatory reform—the introduction of this new insurance framework signals a step towards long-term sustainability and global competitiveness.
