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The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding to protect policyholders and safeguard air travellers.
At the signing ceremony, the Commissioner for Insurance, Mr Olusegun Omosehin, notified Nigerians that the engagement was a serious commitment to the safety, integrity and resilience of Nigeria’s aviation ecosystem.
According to him, the Commission and the Authority would be 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.
“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.
“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. 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 NAICOM chief informed participants that the MoU would establish a Joint Technical Committee, which would serve as the engine room for the implementation of the 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.
The Commission assured NCAA management of its full commitment to the success of the Committee, promising to 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.
“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.”
Omosehin added that, beyond regulatory compliance, the partnership would create economic value and strengthen investor confidence in Nigeria’s aviation ecosystem.
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“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.
“As Nigeria pursues the attainment of a one trillion-dollar economy ($1 trillion economy by 2030) under the Renewed Hope Agenda, effective risk management and strong insurance protection must remain key enablers of investment, enterprise, consumer protection, and long-term national development.
“Let me reaffirm that aviation safety and the protection of air passengers are shared responsibilities that require sustained collaboration among regulators, operators, insurers, and all stakeholders.
“This Memorandum of Understanding therefore represents more than an institutional arrangement; it is a clear commitment to strengthening compliance, enhancing confidence in aviation insurance, and ensuring that Nigeria’s aviation sector continues to align with applicable international conventions and global best practices.
“Through effective cooperation between NAICOM and NCAA, we can better safeguard passengers, protect third parties, support the stability of aviation operations, and contribute to a safer, more resilient, and more trusted air transport system,” he added.
On his part, the Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Ona Najomo, advocated for adequate financial protection for the sector.
The DG noted that 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.”
He stressed that the MoU further deepened that cooperation, enhanced stakeholder confidence and supported cost-efficient operations while addressing challenges faced by Nigerian 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. 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 am confident that the Joint Technical Committee established under this framework will discharge its responsibilities diligently and ensure that the objectives of this partnership translate into 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 assured.
