NCAA Urges Insurers to Adopt Global Standards at Aviation Insurance Summit

The Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo, has called on aviation insurers to enhance compliance, build resilience, and align with global best practices in underwriting and risk management.

He made this appeal during the recent Civil Aviation Insurance Compliance and Financing Summit in Lagos, themed “Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards.” Najomo emphasized the need to establish practical modalities for retaining key elements of existing insurance contracts while transitioning to updated frameworks.

In his keynote address, the Minister of Aviation and Aerospace Development, Festus Keyamo, outlined the shared responsibilities within the aviation sector. He urged airlines to ensure full compliance and transparency in their insurance programs, while challenging insurers to provide sufficient capacity, competitive products, and risk management that meets international standards. Keyamo also stressed the importance of maintaining a stable investment environment to sustain the confidence of lessors and financiers in Nigeria’s aviation industry.

The National Insurance Commission (NAICOM), represented by Director of Inspectorate Bankole Ajibola, presented amendments to prudential guidelines affecting aviation insurance. Key provisions include capping maximum retention per aviation risk at five percent of shareholders’ funds, requiring senior-level authorization for aviation insurance placements, and mandating compliance with international standards, including financial strength ratings. NAICOM also reinforced local content requirements and introduced a 72-hour occurrence-based reporting mandate for incidents.

Despite these regulatory advances, industry operators highlighted persistent challenges. Osita Okonkwo, Chief Operating Officer of United Nigeria Airlines, noted the continued lack of sufficient local capacity to structure, arrange, and underwrite high-value risks associated with large-body aircraft, a gap that must be addressed to fully support the sector’s growth and sustainability.