Yemisi Izuora
The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding (MoU) to advance 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.
According to the NAICOM, the 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.
Speaking during the event, Commissioner for insurance, Olusegun Omosehin,said the cooperation is therefore a significant milestone in deepening collaboration between two critical regulators whose mandates, while distinct, are mutually reinforcing. Through this partnership, both Agencies would advance 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 Commissioner said 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 adding that “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, Omosehin said the MoU aligns squarely with our statutory responsibility of ensuring a sound, stable, and reliable insurance industry.
He said “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.”
He assured 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.
“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. 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. “ he said.
Omosehin said the Commission, appreciated the leadership of the Nigerian Civil Aviation Authority for their partnership, cooperation, and commitment throughout the process leading to this signing and looked forward to a productive and enduring relationship.
He reaffirmed 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.
Also speaking the Director General of the NCAA, Capt. Chris Najomo, said the Aviation remains a paradoxical industry that is globally recognised
as the safest mode of transportation, yet characterised by
high-impact operational risks.
According to Najomo, 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, he said the 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.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.” Najomo said.
“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.
“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 added.