THE Chairman, Boff and Company Insurance Brokers, Mr Olatunde-Agbeja Babajide, says air cargo is capable of earning huge revenue for the government if adequately developed.
Babajide stated this at the 2021 CHINET Aviation and Cargo Conference in Lagos.
According to him, air cargo is the new golden income in Nigeria.
He said, “The earlier we realise it and implement a smooth process of exporting goods and commodities, the better for our economy. Insurance practitioners should start to specialise in the sector for improved technical knowledge and robust underwriting of aviation policies.
“Continuous encouragement of mechanised farming geared toward exports, to reduce the nation’s huge dependence on oil is highly recommended.”
The insurance broker urged the Federal Government to expand airports, which he said were underutilised, to have cargo sections and to improve air cargo transportation within and outside Nigeria.
He urged the relevant stakeholders to purchase an Air Traffic Controller’s Liability (ATCL) insurance policy as soon as possible.
Babajide said, “At my last check, I was amazed to find that there is no air traffic controller’s liability insurance policy in place for the aviation industry in Nigeria. What happens if a traffic controller mistakenly directs two aircrafts into each other’s path, we have had many claims of this nature worldwide overtime, with a few in Nigeria. ATCL policy is compulsory for any aviation industry involved in air traffic control, no matter how small the volume of traffic.”
He also urged the National Insurance Commission (NAICOM) to properly craft its tier-based proposal for insurance companies so that their risk appetite would be determined by the capital they deploy for business.