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LAGOS – The Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has called on insurers covering risks in the aviation sector to strengthen compliance, resilience, and alignment with global best practices, warning that Nigeria must bridge existing gaps in its aviation insurance framework to remain competitive and reliable.
Captain Najomo made the appeal at the Civil Aviation Insurance Compliance and Financing Summit held recently in Lagos.
The event, themed “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards,” brought together regulators, insurers, airline operators, and financial stakeholders to address persistent challenges in aviation risk management and insurance compliance.
In outlining the objectives of the summit, the NCAA Director General said industry players must clearly define practical modalities for retaining key components of existing insurance contracts while transitioning to new regulatory frameworks.
He added that challenges remain in harmonising Nigeria’s aviation safety oversight with financial indemnity obligations, ensuring clarity of global expectations, and outlining compliance requirements without breaching aircraft lease or loan covenants.
Other major concerns highlighted include establishing a uniform guide for operationalising reinsurance frameworks involving foreign insurers under the revised addendum, particularly in line with evolving global standards.
Delivering the keynote address, the Minister of Aviation and Aerospace Development, Festus Keyamo, emphasised that the aviation ecosystem must operate with full transparency and strict adherence to insurance obligations.
According to him, airlines must ensure complete compliance in their insurance programmes, while insurers must guarantee capacity, competitive offerings, and adherence to international risk management benchmarks.
He stressed that lessors and financiers would only retain confidence in Nigeria’s aviation sector if the investment environment remains transparent, stable, and aligned with international norms.
Regulators, he added, must demonstrate operational coordination and maintain proactive communication to sustain investor trust.
A recurring point of discussion at the summit was the dilemma faced by Nigerian airlines, who must comply with local content policies by insuring with local underwriters, while international lessors insist on coverage by global insurers such as Lloyd’s of London. Stakeholders noted that the conflicting requirements have created a long-standing operational challenge for Nigerian carriers.
Representing the National Insurance Commission (NAICOM), Director of Inspectorate Bankole Ajibola provided insights into the Addendum to Prudential Guidelines for Insurers and Reinsurers.
He outlined major policy highlights, including a cap restricting maximum retention per aviation risk to 5 per cent of shareholders’ funds, mandatory senior-level approval for all aviation placements, and compulsory compliance with international financial strength ratings.
The addendum also reinforces local content requirements and introduces a strict 72-hour occurrence-based reporting standard.
Speaking on the limitations of the domestic insurance capacity, the Chief Operating Officer of United Nigeria Airlines, Mazi Osita Okonkwo, lamented that the Nigerian insurance market lacks the capacity to structure, arrange, and underwrite high-level aviation risks, particularly for large-body aircraft.
