By GBARIEL AGBEJA

The Federal Government has rebranded the insurance framework on dry lease aircraft to boost the nation?s aviation sector.

Mr Festus Keyamo, Minister of Aviation and Aerospace Development, made the assertion in Abuja on Monday.

The News Agency of Nigeria (NAN) reports that a ?dry lease? in aircraft leasing means the aircraft is leased without any crew, maintenance, or insurance included.

The lessee (the one using the aircraft) is responsible for hiring their own pilots, handling maintenance, and obtaining necessary insurance.

This type of lease gives the lessee more flexibility and operational control, but also places a greater burden on them.

The minister said the full implementation of the new insurance regulation would give local airline operators opportunities to procure new aircraft.

?The leasing of aviation aircraft will give the operators the needed advantage required in terms of being able to procure new aircraft, which will ultimately be to the advantage of Nigerians.

?This, we hope, will drop the cost of air travel in Nigeria, because they can get more aircraft now with this agreement.

?We also believe that with the agreed insurance regulation, it will also give them some level of comfort in terms of securing this within a timeframe,?? he said.

Keyamo said the government had done its best to develop policies that would make the entire aviation ecosystem in Nigeria more investor-friendly and very conducive for local operators.

Keyamo added that the ministry had determined to focus on empowering local operators to ensure that the ease of doing business would be very much enhanced in Nigeria.

?We have done all we have to do regarding the Cape Town Convention and its applicability to our aviation ecosystem.

?The world is happy with us, and right now we are having the highest score in Africa in terms of compliance with the Cape Town Convention.

?We have also gone ahead to enhance our Irrevocable De-registration and Export Request Authorisation (IDERA) to also meet global standards, which is one of the best in Africa.??

The minister added that the problem of issuance on dry-leased aircraft in Nigeria had always been the challenge and the capacity of local markets.

Also speaking, Capt. Chris Najomo, the Director-General, Nigeria Civil Aviation Authority (NCAA), commended the minister on his efforts toward the feat, adding that the new insurance framework would attract more investment and create opportunities for Nigerians.

Najomo, who was represented by the NCAA Director of Air Transportation Regulation, Mr Yinka Babaoye-Iriobe, added that accessing more aircraft in the aviation sector would boost national Gross Domestic Products.

In his remarks, Prof. Obiorah Okonkwo, the Executive Chairman of United Nigeria Airline, praised the government for implementing the right policies to assist local airlines in Nigeria.

Okonkwo also appealed to the minister to look into how agencies under the ministry could reduce their taxes to allow airline operators in the country to make some profits. (NAN)

Update news