Nigeria’s aviation sector is getting a serious wake-up call — and it came loud and clear from Captain Chris Najomo, Director-General of the Nigeria Civil Aviation Authority (NCAA). Speaking at the Civil Aviation Insurance Compliance and Financing Summit in Lagos, Najomo urged aviation insurers and industry players to step up compliance, boost resilience, and align fully with international aviation insurance standards.
Because in today’s aviation world, he warned, Nigeria cannot afford gaps in its insurance framework if it wants to remain competitive, trusted, and investment-ready.
“Securing the Skies”: A Summit Focused on Global Best Practices
The summit, themed “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards,” brought together regulators, insurers, airline operators, and financiers — all tackling one key mission: strengthening Nigeria’s aviation risk management and insurance structures.
Captain Najomo outlined several critical issues the sector must address:
- How to transition to new aviation insurance regulations without disrupting existing contracts
- Harmonising Nigeria’s aviation safety oversight with global insurance and indemnity expectations
- Ensuring compliance requirements don’t conflict with aircraft lease or loan agreements
- Establishing a uniform framework for reinsurance, especially when working with international insurers
In short — the system needs clarity, consistency, and global alignment.
Keyamo’s Call: Transparency or Nothing
Delivering the keynote address, Minister of Aviation and Aerospace Development, Festus Keyamo, didn’t mince words. He stressed that full transparency and strict adherence to insurance obligations are non-negotiable for the aviation ecosystem.
He highlighted:
- Airlines must have complete and compliant insurance programmes
- Insurers must offer competitive, capacity-driven solutions that meet international standards
- Lessors and financiers will only trust Nigeria’s aviation market when it demonstrates stable, transparent, globally aligned operations
And for regulators? Keyamo said the mission is coordination, communication, and credibility — the three pillars investors look for.
The Local vs. International Insurance Dilemma
One of the hottest issues at the summit was a familiar one for Nigerian airlines:
Local content rules require them to insure with Nigerian underwriters, but aircraft lessors insist on global insurers like Lloyd’s of London.
This tug-of-war has been a long-standing operational headache, leaving airlines caught between compliance and international demands.
NAICOM Clarifies New Rules
Representing NAICOM, Bankole Ajibola, Director of Inspectorate, broke down updates in the Addendum to Prudential Guidelines for Insurers and Reinsurers. Key highlights include:
- A 5% maximum retention cap per aviation risk (relative to shareholders’ funds)
- Mandatory senior management approval for all aviation insurance placements
- Compliance with international financial strength ratings
- Reinforced local content requirements
- A strict 72-hour incident reporting rule
The goal? A stronger, more accountable aviation insurance ecosystem.
Capacity Challenges Still Loom
Not everyone is convinced local insurers are ready.
Mazi Osita Okonkwo, COO of United Nigeria Airlines, voiced concerns that the Nigerian market still lacks the capacity to structure, arrange, and underwrite complex aviation risks, especially for large-body aircraft.
Until capacity improves, airlines will continue relying heavily on international markets to meet aircraft financing and insurance obligations.
