The Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has called for stricter compliance and stronger alignment with global aviation insurance standards, warning that Nigeria must close critical gaps in its risk-protection framework to maintain credibility in the international aviation space.
Najomo made the remarks at the Civil Aviation Insurance Compliance and Financing Summit held recently in Lagos. The summit, themed “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards,” convened regulators, insurers, airline operators and financial institutions to address persistent challenges in aviation risk management and insurance compliance.
Speaking on the summit’s objectives, Najomo said the industry must reach clear agreements on how to transition to new insurance regulations without disrupting existing contractual obligations. He noted ongoing gaps in harmonising Nigeria’s safety oversight responsibilities with financial indemnity requirements, as well as the need for clarity on global compliance expectations to avoid violations of aircraft lease and loan covenants.
He also highlighted concerns about operationalising reinsurance structures involving foreign insurers under the revised regulatory addendum, stressing the need for uniform guidelines that reflect global standards.
Delivering the keynote address, the Minister of Aviation and Aerospace Development, Festus Keyamo, underscored the necessity of full transparency and strict adherence to insurance obligations across the industry. He said airlines must maintain complete compliance in their insurance programmes, while insurers must demonstrate adequate capacity, competitive offerings and alignment with international risk-management benchmarks.
Keyamo added that investor confidence—particularly among aircraft lessors and financiers—hinges on transparency, regulatory consistency and closer coordination among oversight agencies.
A central issue at the summit was the long-standing conflict between Nigeria’s local content requirements, which compel airlines to insure with local underwriters, and the preference of international lessors for global insurance providers such as Lloyd’s of London. Stakeholders agreed that the conflicting requirements continue to pose major operational challenges for domestic carriers.
Representing the National Insurance Commission (NAICOM), Director of Inspectorate Bankole Ajibola outlined provisions in the Addendum to the Prudential Guidelines for Insurers and Reinsurers. Key elements include a cap limiting maximum retention per aviation risk to 5 per cent of an insurer’s shareholders’ funds, mandatory senior-level approval for aviation placements, and compulsory compliance with internationally recognised financial strength ratings.
The addendum also strengthens local content rules and introduces a strict 72-hour occurrence-based reporting requirement.
Highlighting the limitations of Nigeria’s domestic insurance market, the Chief Operating Officer of United Nigeria Airlines, Mazi Osita Okonkwo, noted that local insurers lack the capacity to structure and underwrite major aviation risks, particularly those involving large-body aircraft.
