Nigeria’s airline operators and the National Insurance Commission (NAICOM) have expressed differing views on the challenges of aviation insurance within Nigeria.
This issue came to light during a stakeholder engagement aimed at forming new partnerships between the Nigeria Insurance Association (NIA) and airlines.
While members of the Airline Operators of Nigeria (AON) raised concerns over the additional burden imposed by local insurers, representatives from the NIA maintained their readiness to address these issues effectively.
They emphasised the local insurance industry’s capacity and expertise in managing aviation-related risks, stating that the industry was prepared to meet international standards.
The meeting, held at Transcorp Hilton Hotel in Abuja, gathered various stakeholders to address persistent concerns regarding aviation insurance within Nigeria.
The discussions centred on finding practical solutions to streamline the insurance processes for the country’s airline industry. Aviation Minister, Festus Keyamo, co-chaired the event with Minister of Industry, Trade, and Investments, Mrs. Jumoke Oduwole.
In a statement signed by Tunde Moshood, the collaboration was seen as a key step in addressing AON’s concerns.
Airline representatives voiced dissatisfaction during a panel session, expressing frustration over the additional operational burdens they faced.
The session, moderated by Keyamo, allowed participants to air grievances about local insurers. Consequently, representatives highlighted additional costs. These costs were hindering operations and affecting profitability.
Moreover, the panel stressed the need for solutions to reduce operational challenges. They also emphasised improving collaboration with Nigerian insurers. Ultimately, they believed these factors hindered full utilisation of local insurance providers.
However, Chairman Olusegun Ayo Omosehin refuted any misconceptions regarding reinsurance in Nigeria. He assured attendees that Nigerian insurers were more than capable of effectively handling aviation-related risks.
Leaders from the NIA, including Director-General Bola Odukale, reinforced this message, providing data-backed presentations to challenge any doubts surrounding the industry’s capacity and its alignment with global standards.
The forum concluded with a consensus to continue further engagement and initiate enlightenment programs. Stakeholders highlighted the importance of reassuring foreign insurers and underwriters about the strength of Nigeria’s local insurance capabilities. This is seen as a vital step in enhancing Nigeria’s position in the global aviation market.
Aviation and insurance representatives committed to attending the Economic Conference in Dublin, Ireland, from January 12-15, 2025.
The event will offer a platform for engaging with global leasing companies and highlighting Nigeria’s commitment to aviation growth. It will also provide further opportunities to emphasise the importance of insurance reform in the aviation industry.
Nigeria’s participation in this international event underscores its dedication to advancing aviation and strengthening its local insurance sector.
Notable figures in attendance included Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, among others. Hon. Usman Ahmed Jaha, House of Representatives member, also participated in the discussions about aviation insurance.
Permanent Secretary of the Ministry of Aviation and Aerospace Development, Dr. Emmanuel Meribole contributed insights during the meeting.
The Acting Director General of the Nigerian Civil Aviation Authority (NCAA), Capt. Chris Ona Najomo provided valuable input on aviation policies.
The Chairman of NAICOM, Olusegun Ayo Omosehin reassured stakeholders of the capability of local insurers to handle aviation risks. Kunle Ahmed, Chairman of the NIA, emphasised the importance of strengthening the local insurance sector’s role in aviation.