Airline operators, NAICOM, seek solution to aviation sector burden

Airline operators have expressed worry over the additional burden imposed by local insurers, and representatives.

This is coming as the National Insurance Commission (NAICOM) emphasized the local insurance industry’s capacity and expertise in managing aviation-related risks, stating that the industry was prepared to meet international standards.

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 emphasized 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.

Spokesman for the Minister of Aviation and Aerospace Development, Mr Tunde Moshood said 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 Aviation Minister, Mr. Festus Keyamo, allowed participants to air grievances about local insurers.

Consequently, representatives highlighted additional costs. These costs he said were hindering operations and affecting profitability.

Moreover, the panel stressed the need for solutions to reduce operational challenges. They also emphasized improving collaboration with Nigerian insurers. Ultimately, they believed these factors hindered full utilization of local insurance providers.

However, NAICOM Commissioner, 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 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 global leasing companies and highlighting Nigeria’s commitment to aviation growth.

It will also provide further opportunities to emphasize 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 and the Chairman of the Senate Committee on Banking. Hon. Usman Ahmed Jaha, House of Representatives member, also participated in the discussions about aviation insurance. Dr. Emmanuel Meribole, Permanent Secretary of the Ministry of Aviation and Aerospace Development, contributed insights during the meeting. Capt. Chris Ona Najomo, Acting Director General of the Nigerian Civil Aviation Authority (NCAA), provided valuable input on aviation policies. Olusegun Ayo Omosehin, Chairman of NAICOM, reassured stakeholders of the capability of local insurers to handle aviation risks. Kunle Ahmed, Chairman of the NIA, emphasized the importance of strengthening the local insurance sector’s role in aviation.

Wole Shadare