Nigerian airlines are facing inflated insurance premiums, paying 10-20% more than their foreign counterparts due to perceptions of heightened risks within the country’s aviation sector.
This concern was highlighted by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a recent conference on aircraft leasing in Dublin.
Keyamo explained that these inflated premiums are not reflective of actual risks but are rooted in external misconceptions about Nigeria’s aviation ecosystem.
Despite operating within global standards and fulfilling their financial obligations, Nigerian airlines remain subject to higher insurance costs.
The minister pointed out that most Nigerian airlines successfully manage their operations under Aircraft, Crew, Maintenance, and Insurance (ACMI) agreements.
Their ability to meet these obligations demonstrates their reliability and financial responsibility.
He expressed the government’s commitment to addressing these challenges, revealing plans to collaborate with insurance stakeholders to correct these misconceptions.
The goal is to reduce the financial burden on Nigerian airlines and align their premiums with global standards.
Keyamo described the inflated premiums as a significant challenge but voiced optimism that ongoing discussions would lead to fairer treatment for Nigerian airlines.
He emphasized the importance of communicating Nigeria’s position to global insurers and resolving the issue of perceived risks that unjustly drive up costs.
The minister assured that efforts are underway to “untie the knot around insurance,” enabling a more equitable operating environment for Nigeria’s aviation industry.
