NCAA, NAICOM Sign MoU to Strengthen Aviation Insurance, Boost Investor Confidence

The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to deepen regulatory cooperation and enhance oversight of aviation insurance in Nigeria.

The agreement, signed at the NCAA headquarters in Abuja on Wednesday, also established a Joint Technical Committee on Aviation Insurance to ensure sustained collaboration between the two agencies.

Capt. Chris Najomo, Director-General of Civil Aviation, stated that the partnership is designed to strengthen aviation safety, financial resilience, and regulatory compliance while protecting the travelling public and industry stakeholders.

He noted that while aviation is globally recognized as the safest mode of transportation, it is inherently characterized by high-impact operational risks, making a transparent and verifiable insurance framework essential. According to him, the NCAA’s statutory responsibility for mitigating aviation risks must be complemented by effective financial protection.

“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 collaboration would promote sustainable insurance practices, reduce avoidable regulatory challenges, and support the long-term growth of the industry.

Echoing this sentiment, the Commissioner for Insurance at NAICOM, Olusegun Omosehin, described the MoU as a demonstration of the regulators’ shared responsibility to protect passengers, businesses, and other stakeholders in the aviation ecosystem. He stressed that insurance protection in aviation extends beyond mere regulatory compliance, describing it as an essential risk-management tool.

“Given the nature of aviation operations, effective insurance protection is not merely a regulatory requirement. It is an essential risk management tool that safeguards the lives of travellers, their property, and businesses,” Omosehin said.

He disclosed that NAICOM has also made concessions on certain insurance requirements relating to aircraft leasing to support the aviation sector and provide greater comfort to financiers. He emphasized that the success of the MoU will depend on sustained engagement and mutual trust between both regulators.

The Joint Technical Committee, co-chaired by Folorunso Kayode of the NCAA and Alfred Ajuyah of NAICOM, will focus on strengthening existing collaboration and improving confidence in Nigeria’s insurance market.

Kayode stated that the initiative would reassure financiers, aircraft lessors, and banks that the country’s insurance industry is capable of settling legitimate claims promptly.

“Besides strengthening the collaboration, it’s also to give confidence to our partners, financiers, lessors, and even our banks here in Nigeria that we have insurance policies that work,” he said.