Airfares to reduce as NAICOM eases aircraft leasing with new insurance rules

Airfares is 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, revise insurance regulation on leased aircraft.

Olusegun Omosehin, the NAICOM Commissioner for Insurance, announced the development on Monday in Abuja as reported by the News Agency of Nigeria (NAN).

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.

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“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.

Ifeoma Okeke-Korieocha

Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers. She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay. She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos. As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender. She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies. Ifeoma is a one-time winner of the prestigious Nigeria Media Merit Award under the 'Aviation Writer of the Year' Category. She is the 2025 Eloy Award winner under the Print Media Journalist category. She has undergone several journalism trainings by various prestigious organisations. Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.