The National Insurance Commission (NAICOM) has urged the Nigerian Civil Aviation Authority (NCAA) to comply with the Local Content Act in the insurance industry to safeguard Nigeria’s economic interests. Speaking at the Chinet Aviacargo 2024 Conference in Lagos, the Commissioner for Insurance, Olusegun Omosehin, emphasized that adhering to the local content law would curb capital flight, strengthen the insurance sector, and boost its contribution to the country’s gross domestic product (GDP).
Also read NAICOM Faces Scrutiny Over NPF Insurance Proposal
Omosehin highlighted that airlines insuring abroad violate the Nigerian Content Development Act and the Insurance Act, which mandate that all domestic businesses insure with local firms. He clarified that this requirement is not merely a regulatory imposition but a legal obligation, underscoring the importance of insuring through local companies to meet local content requirements.
The commissioner noted that while aviation insurance is a global business, with risks often reinsured through international entities like Lloyds of London, Nigerian insurers possess the financial capacity to handle aviation-related risks, including aircraft insurance. He attributed the reluctance to insure locally to the influence of international financiers, who often dictate where insurance should be placed due to their control over capital.
Omosehin assured that NAICOM is working to ensure that Nigerian insurance companies are adequately capitalized and equipped with the necessary expertise to manage aviation risks. He emphasized that developing local capacity is crucial for the growth and sustainability of the aviation sector.
In conclusion, Omosehin reaffirmed NAICOM’s commitment to bolstering the local insurance industry, stressing the importance of local content in driving the development of Nigeria’s aviation sector.
