Nigerian Airlines Grapple with High Aircraft Insurance Premiums Despite Improved Ratings

Despite Nigerian airlines' improved ratings with lessors, they still struggle with exorbitant aircraft insurance premiums, reaching N15 billion last year. The high costs, compared to international standards, are attributed to market risks and the country's perceived high-risk status.

Efforts by the Nigerian government and industry players like AerCap have aimed to lower premiums, but uncertainties remain due to market fluctuations. Sunni Adeda of Alpha Choice Insurance Broker highlights the dependence of premiums on market conditions and risks.

The aviation insurance market faces challenges in reducing costs for Nigerian carriers, impacting their operational expenses.