The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to strengthen the regulation, supervision and implementation of aviation insurance in Nigeria.
The agreement was signed on Wednesday at the NCAA headquarters in Abuja by the Director-General of Civil Aviation, Capt. Chris Ona Najomo, and the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin.
The partnership also establishes a Joint Technical Committee on Aviation Insurance, comprising representatives of both regulatory agencies, to coordinate technical and regulatory issues affecting aviation insurance.
Najomo said the agreement builds on years of cooperation between the NCAA and NAICOM and would strengthen aviation safety, regulatory compliance, financial resilience and protection for passengers and other industry stakeholders.
He explained that while aviation remains one of the safest modes of transportation globally, the sector is exposed to operational risks with potentially significant financial consequences, making adequate insurance coverage essential.
According to him, NAICOM has over the years supported the NCAA by providing expert assessments of the adequacy and viability of insurance policies obtained by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.
The NCAA boss said the new framework would deepen collaboration between the regulators, improve stakeholder confidence and help address challenges affecting Nigerian aviation operators.
He added that the agreement would promote sustainable insurance practices, reduce regulatory bottlenecks and support the long-term growth and resilience of the aviation industry.
Najomo commended the technical teams from both agencies for their work in developing the agreement and expressed confidence that the Joint Technical Committee would ensure its effective implementation.
Omosehin, on his part, described the MoU as an important step towards strengthening the safety, integrity and resilience of Nigeria’s aviation ecosystem.
He said insurance protection in aviation should not be viewed solely as a regulatory obligation but as a critical risk-management mechanism capable of protecting passengers, assets, businesses and the wider economy.
The NAICOM chief stressed the need for regulators to ensure that aviation insurance policies remain valid, adequate and responsive to emerging risks.
He said adequate insurance coverage would provide critical financial protection to families, businesses and other entities affected by serious aviation accidents.
“This is the foundation of a stronger framework of cooperation that will ultimately benefit the aviation sector, the insurance industry and the Nigerian economy,” Omosehin said.
Also speaking, the NCAA Director of Air Transport Regulation, Mrs. Olayinka Babaoye-Iriobe, said effective implementation of the MoU would require adequate underwriting capacity, contract certainty, appropriate risk retention and strong regulatory compliance and enforcement.
She noted that the partnership would help address emerging challenges in aviation insurance, improve risk management, enhance contract certainty and facilitate access to aircraft leasing and financing.
The NCAA co-chair of the Joint Technical Committee, Mr. Folorunso Matthew Kayode, described the agreement as a significant milestone that would create new opportunities for the aviation industry.
The NAICOM co-chair, Mr. Ajuyah Alfred, said the partnership would also strengthen confidence among financiers, lessors and other international partners by demonstrating the capacity of Nigeria’s insurance industry to provide effective coverage and settle legitimate claims promptly.
He said the MoU would ultimately enhance confidence in Nigeria’s aviation and insurance sectors while contributing to the broader economy.