The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding (MoU) to strengthen aviation insurance compliance, improve risk protection and promote confidence in Nigeria’s aviation ecosystem.
The agreement is designed to create a more coordinated framework for regulatory compliance, information sharing and stakeholder engagement. It is expected to benefit air passengers, airlines, insurers, financiers, aircraft lessors, international partners and the wider Nigerian public.
Speaking during the signing ceremony, the Commissioner for Insurance, Olusegun Omosehin, described the agreement as a major step towards deepening cooperation between two critical regulators whose mandates are distinct but mutually reinforcing.
He said the partnership would promote stronger compliance, better risk protection and improved information sharing within the aviation sector.
Omosehin noted that aviation occupies a strategic position in the Nigerian economy by supporting commerce, tourism, investment and national development. Given the high-value assets and operational risks associated with aviation, he said effective insurance protection was not merely a regulatory requirement but also an essential risk-management instrument for protecting lives, property, businesses and the broader economy.
“It is therefore imperative that regulators work together to ensure that the insurance arrangements supporting the aviation sector remain adequate, valid and responsive to emerging risks,” he said.
The Commissioner said the MoU was consistent with NAICOM’s statutory responsibility to promote a sound, stable and reliable insurance industry.
Under the agreement, NAICOM will provide regulatory oversight and technical expertise on insurance matters, including the verification of aviation insurance arrangements and the provision of information on licensed insurers authorised to underwrite aviation risks.
The MoU also provides for the establishment of a Joint Technical Committee, which will coordinate the implementation of the agreement. The committee is expected to facilitate information sharing, periodically review insurance requirements, address operational challenges, coordinate stakeholder engagements and promote capacity building for regulators and industry participants.
Omosehin assured the NCAA of NAICOM’s full support for the committee, describing it as a strategic platform for improving cooperation, strengthening the integrity of aviation insurance arrangements and promoting stakeholder confidence.
He said provisions for joint stakeholder engagement, training, information exchange and periodic assessment of insurance coverage maintained by aviation operators would improve regulatory effectiveness and enhance confidence across the sector.
The Commissioner stressed that the success of the partnership would depend on sustained engagement, mutual trust and a shared commitment to regulatory excellence.
He explained that the agreement went beyond compliance, as it was fundamentally aimed at protecting policyholders, air travellers and third parties, while creating economic value and strengthening investor confidence in Nigeria’s aviation industry.
According to him, insurance provides important financial protection for passengers, airlines, financiers, aircraft lessors, service providers and members of the public by ensuring that legitimate liabilities, accidents and losses are properly addressed when they occur.
He described compulsory aviation liability insurance as an important safeguard for air travellers and other users of aviation services, providing assurance that compensation would be available where legally required.
Omosehin added that a strong insurance framework would promote public confidence in air travel, support business continuity, facilitate investment, improve access to financing and contribute to the stability needed for sustainable economic growth.
He said effective risk management and strong insurance protection would remain important as Nigeria pursued the Federal Government’s target of building a one-trillion-dollar economy by 2030 under the Renewed Hope Agenda.
The Commissioner thanked the NCAA leadership for its cooperation throughout the process leading to the signing and reaffirmed that aviation safety and passenger protection were shared responsibilities requiring sustained collaboration among regulators, operators, insurers and other stakeholders.
Also speaking, the Director-General of the NCAA, Capt. Chris Najomo, said aviation was a paradoxical industry because it was globally recognised as the safest mode of transportation while also being exposed to high-impact operational risks.
Najomo said the NCAA’s statutory responsibility to regulate and mitigate those risks must be supported by a robust, transparent and verifiable insurance framework.
He noted that the NCAA and NAICOM had worked closely for several years, with NAICOM providing expert assessments on the adequacy and viability of insurance policies obtained by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.
According to him, the new MoU would deepen the existing relationship, improve stakeholder confidence, support cost-efficient operations and address some of the challenges facing Nigerian aviation operators.
“Our objective is not merely to enforce compliance, but to establish a balanced regulatory environment in which aviation safety and financial protection complement each other,” Najomo said.
He added that the partnership would promote sustainable insurance practices, reduce avoidable regulatory and operational difficulties and support the long-term growth and resilience of Nigeria’s aviation industry.
Najomo commended the joint technical teams of both agencies for their professionalism in developing the agreement and expressed confidence that the Joint Technical Committee would deliver measurable improvements in aviation insurance compliance and oversight.
“As we sign this MoU today, we reaffirm a simple but important principle: aviation safety must be supported by adequate financial protection. This partnership provides a stronger institutional framework for achieving both,” he said.