Keyamo, Nigerian insurers meet over foreign aircraft lessors’ demand for int’l underwriters

Festus Keyamo, minister of aviation and aerospace development, has met with the Nigeria Insurers Association (NIA) over foreign aircraft financiers and lessors’ demand for international underwriters.

The stakeholders’ meeting was held on Wednesday in Abuja, with Airline Operators of Nigeria (AON) and Jumoke Oduwole, minister of industry, trade, and investment.

Others include Chris Ona Najomo, acting director-general of the Nigerian Civil Aviation Authority (NCAA), and Olusegun Ayo Omosehin, chairman of the National Insurance Commission (NAICOM).

On August 28, during a meeting with Boeing executives in Washington, United States, Keyamo said his ministry is working on the issue of insurance, which has been a stumbling block for local airlines to secure needed aircraft for operations.

In a post on X on Thursday, Keyamo said the meeting focused on achieving a balance between the international requirements of aircraft lessors and financiers and the need to promote local insurers in line with Nigeria’s local content laws.

“I held a stakeholders’ engagement meeting on creating a new partnership between the Nigeria Insurers Association (NIA) and the Airline Operators of Nigeria (AON),” Keyamo said.

“The main issue on the table was how to strike a balance between the demands of international aircraft lessors and financiers who often want the risk to be placed in the international market and the need to also promote and protect our local insurers vis-a-vis the local content requirements in our laws.”

‘MEETING EXPLORED SOLUTIONS TO STREAMLINE INSURANCE PROCESSES’

Confirming the development in a statement, Tunde Moshood, the minister’s spokesperson, said the meeting addressed persistent concerns about aviation insurance within Nigeria and explored solutions to streamline insurance processes for the nation’s airline sector.

Moshood said the collaboration marks a significant step toward addressing AON’s concerns that local insurance for aircraft can impose additional operational burdens, a belief that has limited the full utilisation of Nigerian insurance providers.

“During a panel session moderated by the Aviation Minister, AON representatives voiced their reservations and raised questions to NAICOM’s leadership,” he said.

“Chairman 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 Director-General Bola Odukale, provided evidence-backed presentations to dispel any misconceptions within the aviation industry, emphasizing the local industry’s strengths and alignment with international standards.

“The forum concluded with an agreement to pursue further engagement and enlightenment initiatives.”

He said stakeholders stressed the importance of reassuring foreign insurers and underwriters about Nigeria’s robust insurance capabilities, noting that it is a critical step in strengthening Nigeria’s standing 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,” Moshood said.

“The event offers a platform to engage with global leasing companies and further underscore Nigeria’s commitment to aviation growth and insurance reform.”

Moshood said the minister commended all participants for their contributions and expressed optimism that the meeting marks the beginning of transformative changes in Nigeria’s aviation insurance sector.