NAICOM, NCAA sign MoU to strengthen aviation insurance, passenger protection
Abdullateef Fowewe
The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding (MoU) to strengthen regulatory cooperation and improve insurance protection within Nigeria’s aviation sector.
The agreement is aimed at establishing a more coordinated framework for compliance, risk protection, information sharing and stakeholder engagement, while enhancing confidence among passengers, aviation operators, insurers, financiers, lessors and other stakeholders.
Speaking at the signing ceremony, the Commissioner for Insurance/Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, described the agreement as a significant milestone in deepening collaboration between the two regulators.
He said the mandates of NAICOM and NCAA, though distinct, were mutually reinforcing and that greater cooperation would contribute to a safer and more resilient aviation ecosystem.
According to him, aviation occupies a strategic position in the Nigerian economy, supporting commerce, tourism, investment and national development.
He stressed that effective insurance protection in the aviation industry goes beyond regulatory compliance, describing it as an essential risk management tool for safeguarding lives, property, businesses and the wider 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,” he said.
Omosehin stated that the partnership aligns with NAICOM’s statutory responsibility to ensure a sound, stable and reliable insurance industry.
Under the MoU, NAICOM will provide regulatory oversight and technical expertise on insurance matters, including verification of aviation insurance arrangements and information on licensed insurers authorised to underwrite aviation risks.
The agreement also provides for the establishment of a Joint Technical Committee to drive implementation.
The Commissioner said the committee would facilitate information sharing, periodically review insurance requirements, address operational challenges, coordinate stakeholder engagements and promote capacity building for both regulators and industry participants.
He assured the NCAA management of NAICOM’s commitment to providing the necessary technical support and expertise to ensure effective implementation of the committee’s mandate.
He also highlighted provisions for joint stakeholder engagements, training initiatives and periodic assessment of insurance covers maintained by aviation operators.
Beyond regulatory compliance, Omosehin said the partnership was focused on protecting policyholders, air travellers and third parties, while strengthening investor confidence in Nigeria’s aviation ecosystem.
He noted that compulsory aviation liability insurance provides an important safeguard by ensuring that compensation is available where legally due.
He added that a robust aviation insurance framework would promote confidence in air transportation, support business continuity, facilitate investment and enhance access to financing.
Omosehin further said effective risk management and strong insurance protection would remain important to Nigeria’s pursuit of a $1tn economy by 2030 under the Renewed Hope Agenda.
He expressed appreciation to the NCAA leadership for its cooperation and commitment, stressing that sustained engagement between regulators, operators, insurers and other stakeholders would be critical to achieving the objectives of the MoU.
