By Bakare Olatunde
The Chairman Senate Committee on Aviation and Aerospace Development, Sen. Abdulfatai Buhari, has said the Nigeria insurance industry bill, 2024 will attract global investment to the nation when passed into law.
The lawmaker revealed this yesterday in a paper delivered at the Nigeria Insurance Forum, a section of Airline Economics Growth Frontiers Global in Dublin, Ireland.
The programme, which is part of Airline Economics Week, focuses on the latest developments and trends in the global aviation industry with a particular emphasis on the finance and leasing of aviation assets.
According to him, such a more robust and modern regulatory framework Bill will potentially increase confidence in the Nigerian insurance market, making it more attractive to foreign investors.
For him, Insurance Reform Bill, aims to provide a comprehensive legal and regulatory framework for the insurance business in Nigeria.
‘’It is a significant milestone in the efforts to reform the insurance industry.
“This overhaul is expected to bring the insurance industry in Nigeria up to date with global best practices; the bill seeks to repeal and replace several outdated insurance laws,’’ he said.
The senator canvassed certain percentage of the insurance on the aircraft dry lease that would be acquired by the Nigerian local airlines to be accrued into local Nigerian market.
Buhari said carrying Nigerian market along with the international market of the insurance on aircraft dry lease would provide additional comfort and boost confidence in the area of regulation in Nigeria.
Also the Chief Executive Officer, United Nigeria Airlines, Prof. Obiora Okonkwo, said that satisfying the lessors interest and the local market in terms of insurance could be a big task for the local airlines to acquire dry leases.
Okonkwo stated that the lessors wanted 100 per cent of the insurance on their aircraft dry lease to be in the international market.
‘’The lessors want their equipment safe and secured, so, regarding the insurance, we need to find a common position; there is no regulation that makes it compulsory to be domesticated in Nigeria.
“The lessors are listening to us; we need to have the same spirit to grow the industry, the bigger the industry the better for us.
‘’Even, if it is a small percentage the local market gets, it is still better than nothing, “ he said.
However, he commended transportation ideals the Federal Government had embarked on to advance the aviation sector in Nigeria.
Speaking also at the programme, the Commissioner for Insurance, Olusegun Omosehin, maintained that a certain part of the insurance ought to be shared with the local market in Nigeria.
According to him, 6 per cent to 20 per cent of the insurance of the aircraft dry lease that will come to Nigeria will significantly increase the nation’s Gross Domestic Product (GDP).
The Minister of Aviation and Aerospace Development, Festus Keyamo, said that the Federal Government would keep intensifying efforts towards creating a conducive environment to encourage global investors in the aviation sector in Nigeria.
Keyamo argued that the aviation industry had been a very sensitive sector of the nation’s economy, adding that safety and security in the sector could not be overemphasised.
