NAICOM, NCAA strengthen aviation insurance regulation

National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have collaborated to advance the coordination of framework for regulatory compliance in the aviation sector in Nigeria.

Speaking at the signing of the Memorandum of Understanding (MoU) in Abuja, the Commissioner of Insurance, Olusegun Ayo Omosehin, said, “Through this partnership, we are advancing a more coordinated framework for compliance, risk protection, information sharing, and stakeholder confidence—one that better serves passengers, operators, insurers, financiers, lessors, international partners, and the Nigerian public at large.

“This occasion represents not only the strengthening of institutional cooperation, but also a clear affirmation of our shared regulatory commitment to the safety, integrity, and resilience of Nigeria’s aviation ecosystem.

“The aviation industry occupies a strategic position in our economy, providing critical services that support commerce, tourism, investment, and national development. Given the nature of aviation operations, effective insurance protection is not merely a regulatory requirement; it is an essential risk management tool that safeguards lives, property, businesses, and the broader economy”.

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He explained that regulators must work together to ensure that the insurance arrangements supporting the aviation sector remain adequate, valid, and responsive to emerging risks.

“For NAICOM, this partnership aligns squarely with our statutory responsibility of ensuring a sound, stable, and reliable insurance industry. Through this collaboration, NAICOM will continue to provide regulatory oversight and technical expertise in insurance matters, including the verification of aviation insurance arrangements, the provision of information on licensed insurers authorized to underwrite aviation risks, and support for initiatives that protect Nigerians and promote industry compliance.

“The Memorandum also establishes a Joint Technical Committee which will serve as the engine room for the implementation of our shared objectives. The Committee is expected to facilitate information sharing, conduct periodic reviews of insurance requirements, address operational challenges, coordinate stakeholder engagements, and promote capacity building for both institutions and industry participants.

“I wish to assure the NCAA management of NAICOM’s full commitment to the success of this Committee. We will provide the necessary technical support and expertise to ensure effective delivery of its mandate. We regard the Committee as a strategic platform for strengthening regulatory cooperation, enhancing the integrity of aviation insurance arrangements, and promoting stakeholder confidence in the sector”.

He stated that “we are particularly encouraged by the provisions that promote the exchange of information, joint stakeholder engagement, training initiatives, and the periodic assessment of insurance cover maintained by operators within the aviation ecosystem. These measures will contribute significantly to improved regulatory effectiveness and enhanced confidence among stakeholders.

“Let me also emphasize that beyond the provisions of this MoU, the success of this collaboration will depend on sustained engagement, mutual trust, and a shared commitment to regulatory excellence. Both institutions have important and complementary mandates, and by working together, we can achieve outcomes that will advance the interests of Nigerians and aviation stakeholders alike.

“As we append our signatures to this Memorandum, we are laying the foundation for a stronger framework of cooperation that will ultimately benefit the aviation sector, the insurance industry, and the Nigerian economy as a whole.

“Beyond regulatory compliance, this partnership is fundamentally about protecting policyholders, safeguarding air travellers and other third parties, creating economic value, and strengthening investor confidence in Nigeria’s aviation ecosystem. Insurance provides critical financial protection to passengers, airlines, financiers, lessors, service providers, and members of the public by ensuring that legitimate liabilities, accidents, and losses are promptly and fairly addressed when they arise. In this regard, compulsory aviation liability insurance serves as an important safeguard for air travellers and other users of aviation services, providing assurance that compensation will be available where legally due.

“A robust insurance framework therefore promotes public confidence in air transportation, supports business continuity, facilitates investment, enhances access to financing, and contributes to the stability required for sustainable economic growth”.

In his welcome address, the Director General of NCAA, Capt. Chris Najomo said, “Today’s event represents the culmination of a long-standing collaborative relationship between our two regulatory institutions and reinforces our shared commitment to strengthening aviation safety, financial resilience, regulatory compliance and the protection of the travelling public and other aviation stakeholders, in addition to the formal establishment of a Joint Technical Committee on Aviation Insurance.

“Aviation remains a paradoxical industry that is globally recognised as the safest mode of transportation, yet characterised by high-impact operational risks. 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. This partnership with NAICOM strengthens that foundation and reinforces the operational safety and financial resilience of the Nigerian aviation sector.

“For several years, NCAA and NAICOM have worked closely, with NAICOM providing expert assessments on the adequacy and viability of insurance policies procured by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.

“This MoU we are signing today further deepens that cooperation, enhances stakeholder confidence, and supports cost-efficient operations while addressing challenges faced by Nigerian operators”.

He noted that “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. Through effective collaboration, we intend to promote sustainable insurance practices, minimise avoidable regulatory and operational challenges, while supporting the long-term growth and resilience of Nigeria’s aviation industry, in line with the Renewed Hope Agenda of the Federal Government.

“I, therefore, commend the Joint Technical Teams of the NCAA and NAICOM for the diligence and professionalism demonstrated in developing this MoU. I particularly appreciate the Commissioner for Insurance and the entire NAICOM team for their cooperation and commitment throughout this process”.