The Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025) is set to transform the aviation sector by tightening claims regulations, enhancing passenger protection, and deepening collaboration between airlines and insurers, stakeholders have said.
At the 5th CHINET Aviacargo Conference during the 21st Akwaaba African Travel Market in Lagos, industry leaders described the legislation as a “game-changer” for both aviation and insurance.
Usman Jankara Jimada, Deputy Commissioner for Insurance at the National Insurance Commission (NAICOM), said the Act has elevated the industry’s role in safeguarding the economy. Representing Olusegun Ayo Omosehin, NAICOM Commissioner and CEO, he explained that a key feature of NIIRA 2025 is the creation of the Insurance Policyholders Protection Fund.
“The Fund ensures that claims are paid even if an insurer becomes insolvent, eliminating the fear of unpaid compensation,” Jimada said. “Passengers and operators alike can now have stronger confidence in the system.”
The Act also introduces a risk-based supervision model, allowing NAICOM to monitor institutions based on the scale of risks they pose to financial stability. Another critical provision shortens the maximum time for claims settlement from 90 days to 60, with NAICOM considering a 45-day limit for aviation claims.
“Insurers who delay beyond the stipulated time will face penalties and compounded interest on claims,” Jimada warned.
Industry players say these reforms already place Nigeria ahead of some foreign counterparts in terms of claims efficiency.
Bimbo Onakomaiya, MD/CEO of PeakThrust Insurance Brokers Limited, welcomed the reforms, stressing the aviation sector’s heavy exposure to risks. “From piracy to accidents, aviation is highly vulnerable. Robust insurance coverage is essential not only for aircraft and cargo but also for human capital through group life and accident insurance,” she said.
Onakomaiya added that stronger collaboration between insurers and the aviation industry will enhance safety, strengthen business confidence, and improve Nigeria’s competitiveness in global aviation.
With Nigeria boasting a growing number of registered aircraft, airports, and airstrips, stakeholders agreed that the NIIRA 2025 could provide the security backbone necessary for sustainable growth in the sector.
