The Nigeria Civil Aviation Authority (NCAA) has called for the adoption of enhanced global standards in aviation insurance and aircraft safety. Speaking at the recent Civil Aviation Insurance Compliance and Financing Summit in Lagos, Director General Chris Najomo emphasized the importance of global best practices for insurers and regulators to ensure the resilience and compliance of Nigeria’s aviation industry.
The summit, themed "Securing the Skies: Navigating Aviation Insurance and Aircraft Finance Safeguards," addressed several pressing industry challenges. Najomo highlighted issues around transitioning to new insurance frameworks, clarifying international expectations, and harmonizing safety oversight with financial indemnity obligations. Participants discussed the longstanding dilemma of balancing local content policies requiring insurance with local insurers against international insurers preferred by aircraft lessors.
Minister Festus Keyamo underscored the need for full transparency in airline insurance programs and called for a stable investment climate to attract foreign lessors and financiers. The summit also featured technical discussions on risk retention limits, adherence to international standards, and market capacity constraints.
Industry stakeholders voiced concerns about Nigeria’s limited insurance market capacity to underwrite high-level aviation risks, advocating for market liberalization to promote competition and growth. Recommendations included reviewing the 22-year age limit for commercial aircraft and strengthening the qualification standards for insurance providers to ensure safety and operational efficiency.
Overall, the summit aimed to foster a safer, more competitive Nigerian aviation sector aligned with international best practices and reforms.
