The National Insurance Commission (NAICOM) has affirmed that Nigeria’s aviation insurance sector is now fully compliant with international best practices.
Commissioner for Insurance, Mr Olusegun Omosehin, made this known on Tuesday at the 5th CHINET AviaCargo Conference in Lagos.
Omosehin, represented by Deputy Commissioner (Technical), Dr Usman Jankara, highlighted milestones in the insurance industry that continue to benefit Nigeria’s aviation sector.
He noted that challenges in aviation mainly concern lessors and financiers, who often lack direct access to insurance arrangements.
Omosehin explained that while conventional insurance disallows cut-clause, it was introduced to grant lessors and financiers access to insurance through policy payout clauses.
He added that this adjustment created certainty, aligning Nigeria’s practices with established global standards.
According to him, the commission had also enforced contract certainty, eliminating unclear policy provisions that previously confused policyholders.
“We have banned contract uncertainties. All insurance policies must now clearly state their intents and conditions for policyholders,” he stressed.
On the Nigeria Insurance Industry Reform Act (NIIRA), Omosehin said it would positively impact aviation through the Policyholder Protection Fund.
“The NIIRA establishes the Policyholder Protection Fund to settle genuine claims if insurers default,” he said.
He added that the law also adopted a risk-based supervision framework, penalising insurers who delay claim settlements.
Omosehin emphasised that Nigerian insurers now settle claims more quickly than their foreign counterparts, particularly within the aviation sector.
“These reforms are strategic actions to strengthen both the insurance industry and Nigeria’s economy,” he added.
He reaffirmed NAICOM’s commitment to working with aviation stakeholders to advance the sector.
Dr. Kunle Ahmed, Chief Executive Officer of AXA Mansard, confirmed that NAICOM closely monitors aviation insurance operations.
Ahmed, also the President of the Nigerian Insurers Association (NIA), explained that only about 40 percent of insurers currently underwrite aviation policies, leaving a limited local capacity.
“In writing aviation policies, insurers must first notify NAICOM. Reinsurance abroad is only allowed after exhausting local capacity,” he said.
He commended NIIRA for making aviation insurance compulsory, covering aircraft, cargo handlers, and related services.
“Section 81 of NIIRA mandates registration of aviation policies with NAICOM seven days before operations commence,” Ahmed noted.
He added that Section 15 raised capital requirements for insurance firms, thereby boosting their underwriting capacity and allowing them to retain more risk locally.
Ahmed also explained that aviation premiums remain high due to risk levels and pricing largely influenced by international markets.
Mrs Bimbo Onokomaiya, President of the Professional Insurance Ladies Association, underscored the importance of aviation insurance.
She disclosed that Nigeria currently has approximately 307 registered aircraft, including 147 with the Air Force and the Presidential Air Fleet, all of which are insured locally.
She added that 167 domestic aircraft, 31 airports, 92 airstrips, and 13 scheduled commercial operators also required strong insurance backing.
“No country with such numbers can operate without robust aviation insurance,” she stressed.
Conference Convener, Mr Ikechi Uko, said the event had become an agenda-setter in Nigeria’s aviation industry.
He noted that cargo and insurance issues had gained prominence, with policymakers now working toward solutions.
Overland Airways CEO, Capt. Edward Boyo urged the Federal Airports Authority of Nigeria (FAAN) to ensure that airports nationwide are adequately equipped, warning that the gap affects domestic airline operations.
Stakeholders also discussed airport insurance, passenger cover, and industry-specific challenges.
The CHINET AviaCargo Conference, part of the 21st Akwaaba African Travel Market 2025, drew major aviation stakeholders.
International carriers, including RwandAir and TAAG Angola, also launched services at the event.