By Musa Ibrahim
Nigeria’s aviation insurance industry has reached a new milestone, with regulators confirming that the sector is now fully aligned with international best practices.
The Commissioner for Insurance, Mr. Olusegun Omosehin, disclosed this at the 5th CHINET AviaCargo Conference in Lagos, describing the reforms as a ‘strategic leap’ for the industry and for Nigeria’s economy at large.
Represented by Deputy Commissioner (Technical), Dr. Usman Jankara, Omosehin said aviation insurance has historically posed challenges for lessors and financiers who lacked direct access to policy arrangements. To address this, NAICOM introduced ‘cut-clause’ provisions-previously absent in conventional insurance-allowing financiers direct recourse to payouts in the event of claims.
“This adjustment created certainty and aligned Nigeria’s practices with global standards,” he said.
The commission has also enforced contract certainty, banning ambiguous clauses in policies. “We have banned contract uncertainties. All insurance policies must now clearly state their intents and conditions for policyholders,” Mr. Omosehin stressed.
Reform Through NIIRA
Central to the reforms is the Nigeria Insurance Industry Reform Act (NIIRA), which establishes a Policyholder Protection Fund to settle genuine claims if insurers default. The law also introduced a risk-based supervision framework that penalises delayed claim settlements-changes Mr. Omosehin said have already positioned Nigerian insurers ahead of foreign counterparts in terms of promptness, especially in aviation claims.
“These reforms are strategic actions to strengthen both the insurance industry and Nigeria’s economy,” he noted.
Industry Voices
Reinforcing the regulator’s position, Dr. Kunle Ahmed, CEO of AXA Mansard and President of the Nigerian Insurers Association (NIA), confirmed that NAICOM maintains strict oversight of aviation underwriting.
He noted that only about 40 percent of local insurers currently underwrite aviation risks, with reinsurance abroad permitted only after exhausting domestic capacity. He added that NIIRA had made 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 explained. “Section 15 also raised capital requirements for insurers, boosting their capacity to retain more risk locally.”
Ahmed acknowledged, however, that aviation premiums remain steep due to high risk levels and global market pricing.
Mrs. Bimbo Onokomaiya, President of the Professional Insurance Ladies Association, stressed the scale of Nigeria’s insurance needs. She revealed that the country currently has 307 registered aircraft-including 147 with the Air Force and the Presidential Air Fleet-all insured locally. She added that 167 domestic aircraft, 31 airports, 92 airstrips, and 13 commercial airlines also require strong insurance coverage.
“No country with such numbers can operate without robust aviation insurance,” she said.
Wider Industry Outlook
Conference convener, Mr. Ikechi Uko, described the CHINET AviaCargo platform as an agenda-setter for aviation, noting that cargo and insurance issues are now at the centre of policymaking.
Overland Airways CEO, Capt. Edward Boyo, used the forum to call on the Federal Airports Authority of Nigeria (FAAN) to improve infrastructure nationwide, warning that inadequately equipped airports undermine domestic operations.
The 2025 edition of the CHINET AviaCargo Conference, held as part of the 21st Akwaaba African Travel Market, drew aviation regulators, insurers, airlines, and international carriers, including RwandAir and TAAG Angola, which used the event to announce new services into Nigeria.
For many stakeholders, the alignment of Nigeria’s aviation insurance framework with international standards signals not just compliance but confidence—assuring investors, operators, and passengers alike that the industry is better protected against risks that once kept financiers at arm’s length.
