Dublin: Sen. Abdulfatai Buhari, Chairman of the Senate Committee on Aviation and Aerospace Development, has announced that Nigeria’s Insurance Industry Bill 2024 is poised to attract global investment to the country once it becomes law. This statement was made during the Nigeria Insurance Forum, a segment of the Airline Economics Growth Frontiers Global event held in Dublin, Ireland.
According to News Agency of Nigeria, the Airline Economics Growth Frontiers Global event is part of the broader Airline Economics Week, which takes place from January 12 to 15. The forum is instrumental in highlighting developments and trends within the global aviation industry, particularly focusing on the financing and leasing of aviation assets.
Buhari emphasized that the proposed legislation aims to bolster Nigeria’s regulatory framework, thereby increasing confidence in the nation’s insurance market and making it more appealing to international investors. He stated, “The Nigerian Insurance Reform Bill, 2024, aims to provide a comprehensive legal and regulatory framework for the insurance business in Nigeria. It marks a significant milestone in efforts to reform the industry, bringing Nigeria’s insurance sector in line with global best practices by repealing and replacing outdated laws.”
Additionally, Buhari suggested the allocation of a portion of aircraft dry lease insurance to the Nigerian local market. He explained that involving the local market alongside international insurers would enhance regulatory confidence and provide added security.
Prof. Obiora Okonkwo, CEO of United Nigeria Airlines, highlighted the challenges of meeting the insurance requirements of both lessors and the local market. He noted that lessors often demand that 100 per cent of insurance coverage be managed internationally. He remarked, “The lessors want their equipment safe and secure, we need to find a common ground. While there’s no regulation mandating domestication, even a small percentage for the local market is better than none.” Okonkwo commended the Federal Government’s efforts to modernize Nigeria’s aviation sector, noting that industry growth benefits all stakeholders.
Similarly, Mr. Olusegun Omosehin, CEO of the National Insurance Commission (NAICOM), advocated for 6 per cent to 20 per cent of aircraft dry lease insurance to be allocated to Nigeria’s local market. He emphasized that such measures could significantly boost Nigeria’s Gross Domestic Product (GDP).
Meanwhile, Mr. Festus Keyamo, Minister of Aviation and Aerospace Development, reiterated the government’s commitment to fostering a conducive environment for global investors in the aviation sector. He underscored the critical importance of safety and security in the industry, describing it as an essential component of the nation’s economy.