Airfares in Nigeria are expected to drop following a new policy by the Federal Government aimed at easing aircraft leasing for domestic airlines.

Industry experts say the move could reduce operational costs, enable airlines to expand their fleets, increase competition, and ultimately lead to lower airfares.

Olusegun Omosehin, Commissioner for Insurance at the National Insurance Commission (NAICOM), announced the revised insurance regulation for leased aircraft on Monday in Abuja.

The official unveiling of the Revised Insurance Regulation on Leased Aircraft by the National Insurance Commission was held at the Office of the Hon. Minister of Aviation, Festus Keyamo.

BusinessDay reports that the reform, developed in collaboration with the Ministry of Aviation and Aerospace Development, aims to make aircraft acquisition through leasing more accessible to Nigerian operators by relaxing foreign insurance requirements and increasing the role of local insurers.

NAICOM, in a statement released, said:

“In a groundbreaking move, the Commission has officially launched the Revised Insurance Regulation for Leased Aircraft. This move is set to strengthen Nigeria’s aviation and insurance industries.

Omosehin, the commission boss, explained that leasing aircraft allows operators to modernise and expand their fleets without the heavy capital outlay associated with purchasing new planes

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.

Omosehin added:

“Leasing aircraft gives operators the leverage to acquire new planes, which ultimately benefits Nigerian passengers."
The announcement comes as Nigerian travellers grapple with soaring airfares up over 36% in some cases amid operational constraints especially with no having enough aircraft to airlift passengers.

Aviation analysts say the new policy could enhance efficiency in the aviation sector and support its contribution to national GDP, while aligning Nigeria’s aviation regulatory framework with international standards.

Airline operators welcomed the move, saying it would remove longstanding insurance bottlenecks and open the door to improved fleet capacity.

The revised rules are expected to be implemented in the coming weeks.

Air Peace, other airlines to resume flight operations to Enugu
Earlier, Legit.ng reported that Nigerian airlines are set to resume flight operations to Enugu International Airport following the completion of emergency repairs

The Federal Government has announced that Akanu Ibiam International Airport, Enugu, will reopen for flight operations.

The resumption of flight operations follows the completion of emergency repairs on the runway, which had forced airlines like Air Peace to suspend flights to the airport.

The Federal Airports Authority of Nigeria (FAAN) had earlier, on April 18, announced the closure of the airport after a sudden and significant rupture was detected on a critical section of the runway.