The insurance industry’s designation for Nigeria’s aviation industry as high risk has caused an outbreak of criticism from airline owners in the country and its Ministry of Aviation since it has causes higher premiums. Concerned industry members are urging the Ministry of Aviation to collaborate with NAICOM to help drive down insurance premiums. The Minister of Aviation, Princess Stella Oduah, has described the designation as “unacceptable”.
"It makes my heart bleed that Nigerian airlines registered in Nigeria have to pay twice or more than the amount foreign registered airlines pay on insurance premium.
"They say the reason why aircraft registered in Nigeria is cost more is because Nigeria is considered high risk nation. But we are not high risk. We have the Category One status; we wouldn't get it if we are high risk. We are number 12 in Africa in terms of safety and globally we are regarded as safe. So why are we designated high risk back home?" she queried.
"Ultimately, it is the consumers that suffer because the cost is transferred to them," she also noted.