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NCAA Warns Airlines Operating Without Adequate Insurance

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NCAA

By Adedapo Adesanya

The Nigeria Civil Aviation Authority (NCAA) has urged airlines and other service providers in the subsector to comply with the Nigerian Civil Aviation Regulations (Nig. CARs) 2022 on insurance cover.

This was disclosed by NCAA Director-General, Mr Musa Nuhu, in a directive contained in an all operators letter, referenced NCAA/DG/AIR/11/16/369 signed August 11, 2023, was addressed to all airlines and allied aviation service providers.

According to the NCAA DG, the need for compliance is a sequel to the coming into force of Nig. CARs 2022 on 10th July, 2023 which makes it mandatory for all airlines to comply with Part 18.14.1.1 of the regulations.

“Specifically, Part 18.14.1.1 of the regulations provides, amongst others, that all airlines and other allied aviation service providers must not operate without adequate and valid insurance cover, submitting to the authority copies of valid insurance certificates.

 “They must also provide evidence of payment of premium and other policy documents of insurance cover of not less than three months as specified in IS: 18.14.1.1.

“Having insurance document which must be adequate and renewed before the expiration of the current policy and be submitted to the NCAA as soon as it is renewed,“ Mr Nuhu stated in the statement.

He said non-adherence to the regulation would attract immediate sanctions, including the grounding of the specific aircraft, and taking enforcement action against any airline or service provider that defaulted.

Since the Warsaw Convention of 1929, aviation insurance has been made mandatory for global operators to provide coverage for hull losses, as well as liability for passenger injuries and environmental and third-party damage caused by aircraft accidents.

The NCAA Act of 2006, 74 (1) provides that “any carrier operating air transport services to, from or within Nigeria, or aerodrome operator, aviation fuel supplier, or any provider of ground handling services, meteorological services, air traffic control services, aircraft maintenance services, or provider of such other class of allied service as the Authority may, from time to time, determine in writing shall maintain adequate insurance covering its liability under this Act, and also its liability towards compensation for damages that may be sustained by third parties for an amount to be specified in regulations made by the Authority.”

Unlike other sectors, aviation is high-end, with special risk and attendant high premiums. However, Nigerian aircraft have a higher premium. For instance, the insurance premium on an average aircraft is put between one to two per cent of the entire value in Europe and North America. For aircraft flown in the “high-risk” African region, the insurance goes for between three and five per cent of the entire value.

Across a total of 98 commercial aircraft in the country, the average total insurance premium on aircraft alone is N5.88 billion yearly. To insure passengers require an additional N5 billion minimum.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Travel/Tourism

Customs Tackles Airport Delays With Smart Declaration Platform

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Smart Declaration Platform

By Modupe Gbadeyanka

In a move aimed at improving passenger clearance, compliance and customs operations, the Nigeria Customs Service (NCS) has introduced the Simplified Customs Advanced Declaration System (SCADS).

This platform was launched at the International Wing of the Nnamdi Azikiwe International Airport, Abuja, on Monday, May 18, 2026.

This initiative will simplify baggage declaration for inbound international passengers and reduce manual bottlenecks, improve transparency in revenue assessment and enhance operational efficiency at Nigeria’s international airports.

It allows passengers to declare items before arrival, thereby reducing clearance time while improving compliance and operational integrity.

The introduction of this scheme became necessary following operational challenges encountered on the Service’s previous passenger declaration platform earlier this year, and rather than allow the setbacks to slow operations, customs chose to develop a stronger and more efficient alternative.

“When the earlier platform experienced operational challenges, we chose not to see it as a setback. We saw it as an opportunity to build something better, stronger and more efficient.

“For passengers, this system creates the opportunity for advance declaration before arrival. It means faster clearance, easier compliance and smoother movement through our airports,” the Deputy Comptroller-General of Customs in charge of ICT/Modernisation, Ms Oluyomi Adebakin, said yesterday.

She noted that the system will eliminate subjective revenue assessment by ensuring that duties are automatically generated based on declared items, their quantities, and their actual values.

“When we talk about revenue collection, it is not about collecting more or less. It is about collecting the right revenue. With this system, assessment will now be more objective, accurate and driven by data,” she stated.

Earlier, the Customs Area Controller for FCT Area Command, Comptroller Victoria Alibo, described the selection of the command for the pilot phase as a vote of confidence in its operational capacity.

According to her, the new platform integrates passenger baggage and e-commerce declarations into a single digital framework designed to support global Customs best practices.

“SCADS is designed to simplify declarations, reduce clearance time, eliminate manual bottlenecks and align our operations with international standards,” Ms Alibo said, adding that the pilot phase will run for five days, from Monday, May 18, to Friday, May 22, 2026, during which officers will evaluate the system in a live environment ahead of nationwide deployment.

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Travel/Tourism

Dangote Refinery Slashes Jet Fuel Price to N1,650 Per Litre

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aviation fuel Jet A1

By Aduragbemi Omiyale

The price of aviation fuel, also known as Jet A1, has been reduced by Dangote Petroleum Refinery and Petrochemicals to N1,650 per litre from N1,750 per litre.

The company, in a statement, said this price slash was done to ease cost pressures on airlines and ensure an uninterrupted fuel supply across the country.

This is in addition to a 30-day interest-free credit facility backed by bank guarantees (BG) for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model.

The private refiner also stated that these interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.

Industry stakeholders have repeatedly warned that escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations.

The refinery’s decision is expected to provide relief to airline operators by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.

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Travel/Tourism

Valiente Jet Limited Loses Aircraft to FG

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Valiente Jet Limited

By Adedapo Adesanya

The Economic and Financial Crimes Commission (EFCC) has secured a final forfeiture order for a Hawker private Jet 125 before Justice Emeka Nwite of the Federal High Court, Maitama, Abuja, over its links to fraud, corruption, and money laundering in relation to the Maiduguri Emergency Power Project (MEPP).

The aircraft, with model number 800XP, serial number 258553 and registration number 5N-AMK, was forfeited following an application by the EFCC.

Justice Nwite, ruling on the application, held that no sufficient cause was shown by Valiente Jet Limited, a company owned by Mr Abdulsalam Kachallah, an interested party, why the aircraft should not be finally forfeited to the Federal Government.

“The interested party has not demonstrated with evidence the lawful origin of the funds used to purchase the aircraft,” the judge held, stressing that the disguised manner through which the aircraft was acquired using the name of a Bureau De Change (BDC) operator who denied knowledge of the nature of the transaction further lent credence to the unlawfulness of the entire transaction.

In a statement by the anti-graft agency, it disclosed that the investigation revealed Mr Kachallah entered into unlawful agreements with China Machinery Engineering Company (CMEC) through shell companies.

The EFCC also alleged that he sold privileged bidding information relating to the project in exchange for financial inducements.

“The investigation further showed that CMEC was subsequently awarded three contracts under the project valued at $52,120,172 (Fifty Two Million One Hundred and Twenty Thousand, One Hundred and Seventy Two Dollars) and ₦20,213,956,953 (Twenty Billion, Two Hundred and Thirteen Million, Nine Hundred and Fifty Six Thousand, Nine Hundred and Fifty Three Naira),” it said.

The EFCC revealed that part of the contract funds was routed through Afuwa Integrated Services Limited, a Bureau De Change operator, under the false claim that the company was subcontracted by CMEC.

“CMEC transferred the sum of $2,070,000 (Two Million, Seventy Thousand Dollars) into the Stanbic IBTC Bank account of Afuwa Integrated Services Limited on Kachallah’s instruction,” it further revealed.

It disclosed that forged invoices were prepared in the name of Afuwa Integrated Services Limited to falsely portray that legitimate services had been rendered to CMEC.

“The funds were thereafter transferred to a Brazilian account for the purchase of the aircraft from a Brazilian company,” the EFCC revealed.

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