Keyamo, airline operators, insurers in dialogue over aviation insurance

Sade Williams/Business a.m.

A high-level stakeholder engagement designed to foster partnerships between the Nigeria Insurance Association (NIA) and the Airline Operators of Nigeria (AON) has been set in motion by Festus Keyamo, the minister of aviation and aerospace development.

This is coming on the back of Keyamo’s recent convening of the high-level stakeholder engagement.

The stakeholders engagement meeting, which took place in Abuja, addressed the persistent concerns regarding aviation insurance within Nigeria and explored solutions to streamline insurance processes for the nation’s airline industry.

Jumoke Oduwole, the minister of industry, trade, and investments, co-chaired the event alongside the aviation minister.

In attendance were notable figures, including senator Mukhail Adetokunbo Abiru, chairman of the senate committee on banking; Usman Ahmed Jaha, House of Representatives member; Emmanuel Meribole, permanent secretary, Ministry of Aviation and Aerospace Development; Chris Ona Najomo, acting director general, Nigerian Civil Aviation Authority (NCAA); Olusegun Ayo Omosehin, commissioner of insurance and chief executive officer of National Insurance Commission (NAICOM); and Kunle Ahmed, chairman, Nigeria Insurers Association, among others.

Tunde Moshood, special adviser on media and communication to the minister, in a statement noted that the event brought together representatives from Nigeria’s aviation and insurance sectors, including Obiora Okonkwo, chairman, United Nigeria Airlines; Roland Iyayi of TopBrass; and Jafar Shuaibu from the Presidential Enabling Business Environment Council (PEBEC).

This collaboration marks a significant step towards addressing AON’s concerns that insuring aircraft with Nigerian insurers incurs additional operational burdens, a belief that has hindered full utilisation of local insurance providers.

During a panel session moderated by Minister Keyamo, AON representatives voiced their reservations and raised questions for NAICOM’s leadership. Olusegun Ayo Omosehin refuted misconceptions around reinsurance in Nigeria, affirming the capacity and readiness of Nigerian insurers to handle aviation-related risks effectively. Leaders from the NIA, including its director-general, Bola Odukale, provided evidence-backed presentations to dispel any misconceptions within the aviation industry, emphasising the local industry’s strengths and alignment with international standards.

The forum concluded with an agreement to pursue further engagement and enlightenment initiatives. Stakeholders underscored the need to reassure foreign insurers and underwriters of Nigeria’s robust insurance capabilities, a crucial step in bolstering Nigeria’s position in the global aviation market. In line with this objective, representatives from the aviation and insurance sectors committed to participating in the upcoming Economic Conference in Dublin, Ireland, scheduled for January 12-15, 2025. This international event offers a platform to engage with global leasing companies and further underscore Nigeria’s commitment to aviation growth and insurance reform.

Minister Keyamo commended all participants for their candid contributions and expressed optimism that this dialogue marks the beginning of transformative change within Nigeria’s aviation insurance sector.