Airlines Overpay Insurance Premiums Over Perceived Risks – Keyamo

Nigerian airlines are paying 10–20% higher insurance premiums than their foreign counterparts due to perceived risks within the country’s aviation sector, according to Festus Keyamo, the Minister of Aviation and Aerospace Development.

Speaking at a dry leasing conference in Dublin, Keyamo highlighted the disparity, describing the inflated premiums as unjustified and based on misconceptions rather than actual risks.

“The Nigerian airlines have always paid about 10–20% more of the premium that other airlines in other jurisdictions pay, and I think it is because of the perceived risks within the Nigerian aviation ecosystem,” Keyamo said.

He further argued that these risks are often exaggerated, citing the reliability and financial responsibility demonstrated by Nigerian airlines. Many operate Aircraft, Crew, Maintenance, and Insurance (ACMI) leases without defaults, underscoring their stability.

Keyamo assured stakeholders of the government’s commitment to correcting these perceptions by collaborating with the insurance industry to lower premiums. “We want to let the world know that this risk they perceive is not real. We are working with the insurance stakeholders from Nigeria for them to understand our position better.”

Expressing optimism, the minister described the situation as a challenge that ongoing discussions could resolve, ultimately lightening the financial load on Nigerian airline.

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