By 
The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to strengthen oversight of aviation insurance and improve protection for airlines, passengers and other stakeholders across Nigeria’s aviation sector.
The agreement, signed on Wednesday at the NCAA headquarters in Abuja, also provides for the establishment of a Joint Technical Committee on Aviation Insurance to deepen regulatory cooperation between both agencies.
Speaking at the signing ceremony, the Director-General of the NCAA, Chris Najomo, said the partnership would strengthen aviation safety, financial resilience, regulatory compliance and protection for passengers and other aviation stakeholders.
Najomo described the agreement as the culmination of a long-standing relationship between the two regulatory institutions.
“I am delighted to host this landmark event marking the formal signing of the Memorandum of Understanding between the Nigeria Civil Aviation Authority and the National Insurance Commission on cooperation and collaboration in the regulation and oversight of aviation insurance in Nigeria.”
He said the agreement and the establishment of the Joint Technical Committee would reinforce the agencies’ shared commitment to aviation safety, financial resilience, regulatory compliance and protection of the travelling public.
NCAA highlights importance of robust insurance framework
Najomo noted that although aviation is globally recognised as one of the safest modes of transportation, the sector remains exposed to operational risks capable of producing significant financial and safety consequences.
“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.”
According to him, collaboration with NAICOM would strengthen the foundation for managing these risks while reinforcing the operational safety and financial resilience of Nigeria’s aviation industry.
The NCAA boss disclosed that both agencies had worked closely for several years, with NAICOM providing expert assessments of the adequacy and viability of insurance policies secured by aviation operators.
“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 said the new MoU would deepen the existing cooperation, improve stakeholder confidence and support more cost-efficient operations while addressing challenges faced by Nigerian aviation operators.
Partnership targets balanced regulatory environment
Najomo said the objective of the partnership goes beyond enforcing compliance, with both regulators seeking to establish an environment where aviation safety and financial protection reinforce each other.
“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.”
He added that effective collaboration would support sustainable insurance practices and help minimise avoidable regulatory and operational challenges while strengthening the long-term resilience and growth of Nigeria’s aviation industry.
According to Najomo, the partnership aligns with the Renewed Hope Agenda of the Federal Government.
Joint committee to strengthen aviation insurance compliance
Also speaking, the Director of Air Transport Regulation at the NCAA, Babaoye-Iriobe, described aviation insurance as a critical component of the safety, stability and sustainability of the sector.
In her welcome address, she said the NCAA remained committed to ensuring that appropriate insurance arrangements were maintained to protect passengers, operators, third parties, cargo and other interests from liabilities arising from aviation operations.
“Aviation insurance is integral to the safety, stability and sustainability of the aviation industry. As the sector regulator, the NCAA remains committed to ensuring that appropriate insurance arrangements are maintained to protect passengers, operators, third parties, cargo and other interests against liabilities arising from aviation operations.”
Iriobe stressed that effective aviation insurance oversight requires sustained collaboration between aviation and insurance regulators, alongside adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement.
“Effective aviation insurance oversight, however, requires strong collaboration between aviation and insurance regulators. It must also be supported by adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement,” she said.
She explained that officials from the NCAA and NAICOM worked through the Joint Technical Committee on Aviation Insurance to develop the MoU.
According to Iriobe, the framework will strengthen regulatory cooperation, information sharing and verification of aviation insurance compliance while supporting a more resilient and sustainable aviation industry.
The agreement therefore establishes a more structured basis for collaboration between Nigeria’s aviation and insurance regulators, particularly in ensuring that operators maintain adequate insurance protection and meet applicable regulatory requirements.
Comments