The Director General of Civil Aviation, Captain Chris Najomo, has reaffirmed the push for stronger insurance compliance across Nigeria’s aviation sector, describing it as essential for safety, investor confidence, and long-term industry stability.
Speaking through the Director of Air Transport Regulations, Mrs. Olayinka Babaoye-Iriobe, at the Aviation Insurance Compliance and Financing Technical Awareness Summit held in Lagos on 24 November 2025, Najomo said the aviation industry’s high-value assets and exposure to risk make robust insurance structures indispensable.
Aviation’s High-Risk Profile Calls for Stronger Protection
Babaoye-Iriobe noted that aviation is inherently capital-intensive and vulnerable to financial liabilities when insurance gaps exist. She emphasised that although the sector stimulates economic growth by facilitating connectivity and trade, it cannot function safely without transparent, well-regulated insurance frameworks. Strengthening financial protection, she said, is key to keeping the sector reliable and globally competitive.
She explained that volatility in global insurance premiums, growing liability obligations, and evolving regulatory standards have heightened the need for full compliance among Nigerian carriers. To remain resilient, she stressed, operators, insurers, regulators, and financiers must collaborate more closely in aligning Nigeria’s insurance practices with global norms.
Industry Must Adapt to New Regulatory Expectations
According to the DGCA’s representative, the summit provided a platform for stakeholders to better understand emerging insurance and reinsurance requirements. She said the industry must adjust to updated reinsurance arrangements without disrupting ongoing aircraft-leasing contracts.
Operators, she added, must adopt insurance policies that meet international benchmarks while safeguarding their financial interests, especially for leased or financed aircraft where technical compliance is critical to avoiding breaches of loan and lease covenants.
Babaoye-Iriobe said carriers should also work more proactively with regulators to harmonise safety oversight with financial indemnity obligations. The strengthened reinsurance framework, she noted, was introduced to stabilise the market and requires close cooperation with foreign insurers.
She reaffirmed that the NCAA’s regulatory focus is anchored on partnership and operational excellence. Continuous engagement with stakeholders, she said, remains at the core of Nigeria’s aviation transformation, as safety and financial accountability are non-negotiable.
Government Reinforces Compliance Mandate
Minister of Aviation and Aerospace Development, Barrister Festus Keyamo,. represented by FAAN’s Director of Legal Services and Company Secretary, Mrs. Gold Bridget, said the federal government has placed renewed emphasis on strict adherence to insurance policies.
He stated that the latest directives from the National Insurance Commission aim to tighten insurance and reinsurance rules for leased and financed aircraft, ensuring Nigeria maintains credibility within the global aviation sector.
Keyamo cautioned that outdated practices, such as weak documentation and partial compliance, must be discarded. Full adherence to insurance requirements, he said, is now a strategic necessity to attract new investment and sustain confidence among international lessors.
Summit Expected to Shape Stronger Industry Standards
Najomo expressed confidence that the summit would strengthen Nigeria’s aviation insurance framework, as Babaoye-Iriobe highlighted the high calibre of participants including regulators, insurers, financiers, and operators as evidence of the industry’s commitment to reform.
She commended the Directorate of Air Transport Regulations for organising the engagement and reaffirmed the NCAA’s dedication to enforcing insurance compliance across the aviation value chain.
According to her, Nigeria’s aviation progress must continue to be anchored on transparency, financial discipline, and alignment with international best practices.