BY OLAPEJU OLUBI
The Director General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has called on insurers covering aviation risks to align with international best practices, strengthen compliance and enhance resilience in Nigeria’s aviation sector.
Captain Najomo made the appeal during the Civil Aviation Insurance Compliance and Financing Summit, held recently in Lagos themed: “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards.”
He highlighted key challenges facing the sector, including defining practical frameworks for transitioning insurance contracts to meet global standards while retaining critical components, clarifying international expectations, and ensuring technical compliance without violating lease or loan covenants.
“Insurers must harmonise aviation safety oversight with financial indemnity obligations and establish clear guidance for operationalizing reinsurance frameworks involving foreign insurers under new regulatory addenda,” Captain Najomo said.
In his keynote address, Minister of Aviation and Aerospace Development, Festus Keyamo, stressed that airlines must ensure full compliance and transparency in their insurance programmes NCAA Pushes For Global-Standard Aviation Insurance As Stakeholders Seek Market Reform
The Director General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has called on insurers covering aviation risks to align with international best practices, strengthen compliance and enhance resilience in Nigeria’s aviation sector.
Captain Najomo made the appeal during the Civil Aviation Insurance Compliance and Financing Summit, held recently in Lagos themed: “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards.”
“Insurers must harmonise aviation safety oversight with financial indemnity obligations and establish clear guidance for operationalizing reinsurance frameworks involving foreign insurers under new regulatory addenda,” Captain Najomo said.
In his keynote address, Minister of Aviation and Aerospace Development, Festus Keyamo, stressed that airlines must ensure full compliance and transparency in their insurance programmes.
“Insurers must provide capacity, competitive products, and global-standard risk management. Lessors and financiers must be confident that Nigeria provides a stable investment environment,” he said.
The Minister also emphasized that regulators should maintain alignment, operational coordination, and proactive communication to support the industry.
The summit provided a platform for insurers and airline operators to address the dilemma of adhering to local content requirements while meeting lessors’ demands for internationally recognized insurers, such as Lloyd’s of London.
Director of Inspectorate at the National Insurance Commission (NAICOM), Bankole Ajibola, in a presentation on the Addendum to Prudential Guidelines for Insurers and Reinsurers, outlined key points including maximum retention per aviation risk capped at 5% of shareholders’ funds, senior-level authorization for all aviation placements, compliance with international financial strength ratings, local content requirements, and 72-hour occurrence-based reporting obligations.
Mazi Osita Okonkwo, Chief Operating Officer of United Nigeria Airlines, noted the limited capacity in Nigeria’s insurance market to underwrite high-risk coverage for large aircraft, saying it hinders the sector’s growth.
“Prudential Guidelines are only the first step. The insurance market must be liberalized to become competitive, in line with the federal government’s reform agenda,” he said.
Drawing a parallel with banking sector reforms that birthed globally competitive institutions, Okonkwo called for similar modernization in insurance.
Participants further agreed that aircraft safety is not determined by age but by proper maintenance.
They urged regulators and the Ministry of Aviation to review the maximum age limit for commercial aircraft in Nigeria, currently set at 22 years, to ensure safety while fostering industry growth.
The summit ended with a consensus on the need for market reform, global alignment in insurance practices, and stronger collaboration among stakeholders to secure Nigeria’s skies and drive sustainable development in aviation.
“Insurers must provide capacity, competitive products, and global-standard risk management. Lessors and financiers must be confident that Nigeria provides a stable investment environment,” he said.
The Minister also emphasized that regulators should maintain alignment, operational coordination, and proactive communication to support the industry.
The summit provided a platform for insurers and airline operators to address the dilemma of adhering to local content requirements while meeting lessors’ demands for internationally recognized insurers, such as Lloyd’s of London.
Director of Inspectorate at the National Insurance Commission (NAICOM), Bankole Ajibola, in a presentation on the Addendum to Prudential Guidelines for Insurers and Reinsurers, outlined key points including maximum retention per aviation risk capped at 5% of shareholders’ funds, senior-level authorization for all aviation placements, compliance with international financial strength ratings, local content requirements, and 72-hour occurrence-based reporting obligations.
Mazi Osita Okonkwo, Chief Operating Officer of United Nigeria Airlines, noted the limited capacity in Nigeria’s insurance market to underwrite high-risk coverage for large aircraft, saying it hinders the sector’s growth.
“Prudential Guidelines are only the first step. The insurance market must be liberalized to become competitive, in line with the federal government’s reform agenda,” he said.
Drawing a parallel with banking sector reforms that birthed globally competitive institutions, Okonkwo called for similar modernization in insurance.
Participants further agreed that aircraft safety is not determined by age but by proper maintenance.
They urged regulators and the Ministry of Aviation to review the maximum age limit for commercial aircraft in Nigeria, currently set at 22 years, to ensure safety while fostering industry growth.
The summit ended with a consensus on the need for market reform, global alignment in insurance practices, and stronger collaboration among stakeholders to secure Nigeria’s skies and drive sustainable development in aviation.
Olapeju is a journalist and aviation reporter.
