Director General of Civil Aviation, Captain Chris Ona Najomo, has renewed the call for stronger insurance compliance across Nigeria’s aviation sector, stressing that safety and financial integrity depend on a transparent regulatory and insurance framework. He said the sector’s high-value assets and exposure to risk demand a structure that protects aircraft, infrastructure, passengers, and the investments that sustain the industry. His remarks came at the Aviation Insurance Compliance and Financing Technical Awareness Summit held on 24 November 2025 in Lagos.
Captain Najomo, represented by Director of Air Transport Regulations, Mrs Olayinka Babaoye-Iriobe, explained that aviation remains a high-risk and capital-intensive industry where gaps in financial protection could create serious liabilities. She said aviation fuels economies by connecting markets and driving trade; however, it cannot operate safely without adequate insurance structures and sound financial safeguards. According to her, the sector must strengthen its systems to remain efficient, reliable, and globally competitive.
Mrs Babaoye-Iriobe noted that the global aviation environment has become more demanding. She said fluctuating premiums, heightened liability exposure, and new regulatory expectations have made insurance compliance a critical requirement for Nigerian carriers. She emphasised that operators, insurers, regulators, and financiers must work together to build resilience. She added that rising operational risks require a unified approach to align Nigeria’s insurance and financing frameworks with international best practice.
Why Insurance Compliance Must Improve
The DGCA’s representative said the summit offered aviation stakeholders the opportunity to deepen understanding of emerging insurance obligations. She explained that the transition to updated reinsurance structures must not disrupt ongoing aircraft leasing arrangements. Therefore, the industry must retain essential elements of existing policies while adjusting to the mandatory requirements introduced by global and local regulators. She added that operators must adopt policies that meet international expectations but also preserve their financial interests.
Mrs Babaoye-Iriobe stressed that insurance compliance demands clear technical processes, particularly for carriers operating leased or financed aircraft. She said operators must understand their obligations to avoid breaching loan covenants and must work closely with regulators to harmonise financial indemnity with aviation safety oversight. She noted that the summit served as a platform to guide carriers on how to work with foreign insurers under the strengthened reinsurance arrangement introduced to stabilise the market.
She also reaffirmed that the NCAA’s regulatory direction rests on collaboration. According to her, the Authority is committed to a sustainable model that ensures synergy with industry players and strengthens operational excellence. She emphasised that collective engagement remains the backbone of Nigeria’s aviation growth strategy, adding that adherence to safety and financial integrity is non-negotiable.
Government Backs Stronger Compliance Culture
Minister of Aviation and Aerospace Development, Barrister Festus Keyamo (SAN), represented by the Director of Legal Services and Company Secretary of FAAN, Mrs Gold Bridget, said government policy now places heavy emphasis on insurance compliance. He said recent directives by the National Insurance Commission were designed to tighten the rules guiding insurance and reinsurance for leased and financed aircraft. According to him, Nigeria must project financial credibility to remain relevant in the global aviation system.
Keyamo warned that the era of weak documentation and partial adherence to insurance requirements must end. He said operators must meet their full obligations under global financing arrangements to sustain confidence among lessors and foreign partners. He added that compliance is now a strategic requirement for attracting new investment into the Nigerian aviation market.
The DGCA expressed confidence that the summit would shape new directions for the industry. Mrs Babaoye-Iriobe said the calibre of participants, from regulators to financiers, would guarantee results that strengthen Nigeria’s aviation framework. She praised the Directorate of Air Transport Regulations for organising the summit and reaffirmed the NCAA’s dedication to enforcing insurance compliance across the aviation value chain. She concluded that the sector must continue to anchor its progress on transparency, financial responsibility, and global standards.
