Nigerian Insurance Industry Reform Bill Targets Global Investment Boost, Aviation Sector Growth
Nigerian Insurance Industry Reform Bill Targets Global Investment Boost, Aviation Sector Growth
Breakdown of Details:
Introduction of the Reform Bill
Senator Abdulfatai Buhari, Chairman of the Senate Committee on Aviation and Aerospace Development, has announced that the proposed Nigeria Insurance Industry Bill, 2024, is set to position the country’s insurance sector as a global investment hub. The announcement was made during the Nigeria Insurance Forum, held as part of the Airline Economics Growth Frontiers Global event in Dublin, Ireland.
Objective of the Bill
The bill aims to modernize the regulatory framework governing the insurance industry, aligning it with global best practices. Senator Buhari highlighted that this reform will enhance confidence in Nigeria’s insurance market, making it more appealing to foreign investors.
Key Provisions of the Bill
• Updated Legal Framework: The bill seeks to repeal outdated insurance laws, introducing a more comprehensive regulatory framework for the industry.
• Boost for Local Participation: A provision in the bill suggests allocating a percentage of insurance for aircraft dry leases to Nigerian local insurers, thereby increasing domestic market participation.
Insights from Industry Leaders
1. Prof. Obiora Okonkwo (CEO, United Nigeria Airlines):
• Highlighted challenges in balancing lessors’ demands for 100% international insurance with the need to include local market participation.
• Advocated for a collaborative approach to satisfy both lessors and local insurers, emphasizing that even a small percentage allocated to the local market would be beneficial.
2. Olusegun Omosehin (Commissioner for Insurance):
• Suggested that allocating 6% to 20% of insurance for aircraft dry leases to Nigerian insurers could significantly boost the country’s GDP.
Federal Government’s Role
Minister of Aviation and Aerospace Development, Festus Keyamo, assured stakeholders of the Federal Government’s commitment to creating an investor-friendly environment in the aviation and insurance sectors. He emphasized the importance of safety and security in the aviation industry as critical factors for attracting global investments.
Conclusion
The Nigeria Insurance Industry Bill, 2024, represents a milestone in the country’s efforts to reform its insurance sector. By addressing the regulatory framework and encouraging local market participation, the bill aims to strengthen the aviation sector and attract significant global investments, contributing to the nation’s economic growth.
Breakdown of Details:
Introduction of the Reform Bill
Senator Abdulfatai Buhari, Chairman of the Senate Committee on Aviation and Aerospace Development, has announced that the proposed Nigeria Insurance Industry Bill, 2024, is set to position the country’s insurance sector as a global investment hub. The announcement was made during the Nigeria Insurance Forum, held as part of the Airline Economics Growth Frontiers Global event in Dublin, Ireland.
Objective of the Bill
The bill aims to modernize the regulatory framework governing the insurance industry, aligning it with global best practices. Senator Buhari highlighted that this reform will enhance confidence in Nigeria’s insurance market, making it more appealing to foreign investors.
Key Provisions of the Bill
• Updated Legal Framework: The bill seeks to repeal outdated insurance laws, introducing a more comprehensive regulatory framework for the industry.
• Boost for Local Participation: A provision in the bill suggests allocating a percentage of insurance for aircraft dry leases to Nigerian local insurers, thereby increasing domestic market participation.
Insights from Industry Leaders
1. Prof. Obiora Okonkwo (CEO, United Nigeria Airlines):
• Highlighted challenges in balancing lessors’ demands for 100% international insurance with the need to include local market participation.
• Advocated for a collaborative approach to satisfy both lessors and local insurers, emphasizing that even a small percentage allocated to the local market would be beneficial.
2. Olusegun Omosehin (Commissioner for Insurance):
• Suggested that allocating 6% to 20% of insurance for aircraft dry leases to Nigerian insurers could significantly boost the country’s GDP.
Federal Government’s Role
Minister of Aviation and Aerospace Development, Festus Keyamo, assured stakeholders of the Federal Government’s commitment to creating an investor-friendly environment in the aviation and insurance sectors. He emphasized the importance of safety and security in the aviation industry as critical factors for attracting global investments.
Conclusion
The Nigeria Insurance Industry Bill, 2024, represents a milestone in the country’s efforts to reform its insurance sector. By addressing the regulatory framework and encouraging local market participation, the bill aims to strengthen the aviation sector and attract significant global investments, contributing to the nation’s economic growth.
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