The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to strengthen the regulation and oversight of aviation insurance in Nigeria.
The agreement, signed on Wednesday at the NCAA in Abuja also provides for the establishment of a Joint Technical Committee on Aviation Insurance, co-chaired by representatives of both regulatory agencies.
Speaking at the signing ceremony, the Director-General, Civil Aviation, Capt. Chris Najomo, said the partnership would strengthen aviation safety, financial resilience, regulatory compliance and protection for passengers and other industry stakeholders.
Najomo described the agreement as the outcome of years of collaboration between the two agencies, noting that aviation’s high-impact operational risks require a strong insurance framework to complement safety regulation.
“As the Authority statutorily responsible for regulating and mitigating these risks at the State level, our safety mandate must be complemented by a robust, transparent, and verifiable insurance framework,” he said.
According to him, NAICOM has over the years provided expert assessments on the adequacy and viability of insurance policies procured by aviation operators in line with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.
He said the new framework would deepen existing cooperation, improve stakeholder confidence, promote cost-efficient operations and address regulatory challenges confronting Nigerian operators.
Najomo added that the partnership would promote sustainable insurance practices and strengthen the long-term resilience of the aviation industry in line with the Federal Government’s Renewed Hope Agenda.
He expressed confidence that the Joint Technical Committee would translate the objectives of the MoU into measurable improvements in aviation insurance compliance and oversight.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, said the agreement represented a renewed commitment by both regulators to the safety, integrity and resilience of Nigeria’s aviation ecosystem.
Omosehin stressed that insurance should be viewed beyond a regulatory requirement, describing it as an essential risk-management instrument for protecting passengers, property and businesses.
“Given the nature of aviation operations, effective insurance protection is not merely a regulatory requirement; it is an essential risk management tool,” he said.
He said regulators must work together to ensure that insurance arrangements supporting aviation operators remain adequate, valid and responsive to emerging risks.
According to him, adequate insurance protection is particularly critical when serious accidents occur, as it provides financial support for affected families, businesses and other entities.
“We are laying the foundation of what I call the stronger framework of cooperation that will ultimately benefit the aviation sector, the insurance industry and, overall, the Nigerian economy,” Omosehin said.
The Director, Air Transport Regulation, NCAA, Mrs Olayinka Babaoye-Iriobe, said the success of the agreement would depend on adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement.
She said the MoU would provide a platform for tackling emerging challenges in aviation insurance while improving risk management and facilitating access to aircraft leasing and financing.
Babaoye-Iriobe added that stronger insurance arrangements would contribute to the overall financial resilience of Nigerian aviation operators.
The NCAA Co-Chair of the Joint Technical Committee, Mr Folorunso Matthew Kayode, described the agreement as a significant milestone that could unlock new opportunities across the aviation industry.
He assured that the committee would work diligently to implement the terms of the agreement.
His NAICOM counterpart, Mr Ajuyah Alfred, said the partnership would boost confidence among financiers, aircraft lessors and other international partners by demonstrating that Nigeria has a functional insurance system capable of responding effectively to claims.
“It is a confidence statement that when a claim occurs, we have an insurance industry that raises its billing and settles claims on time,” he said.
