NCAA, NAICOM Partner To Strengthen Aviation Insurance Oversight
The Nigeria Civil Aviation Authority and the National Insurance Commission have signed a Memorandum of Understanding aimed at strengthening aviation insurance regulation and improving protection for airlines, passengers and other stakeholders in the Nigerian aviation industry.
The agreement was signed on Wednesday at the NCAA headquarters in Abuja and includes the establishment of a Joint Technical Committee on Aviation Insurance to enhance collaboration between the two regulatory agencies.
Speaking during the signing ceremony, the Director-General of the NCAA, Chris Najomo, said the partnership would strengthen aviation safety, regulatory compliance and the financial resilience of operators while ensuring better protection for passengers and other stakeholders.
Najomo described the agreement as the culmination of a long-standing working relationship between the NCAA and NAICOM, noting that both agencies had collaborated over the years on the assessment of insurance policies obtained by aviation operators.
He said aviation, despite being globally recognised as one of the safest modes of transportation, remained exposed to high-impact operational risks, making adequate insurance coverage essential to the sustainability of the industry.
According to him, the new framework would provide stronger institutional support for ensuring that aviation operators maintain adequate, transparent and verifiable insurance arrangements.
Najomo said NAICOM had previously provided expert assessments on the adequacy and viability of insurance policies procured by aviation operators in line with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.
He explained that the new MoU would deepen the existing cooperation, improve stakeholder confidence and help address some of the regulatory and operational challenges confronting Nigerian airlines.
The NCAA boss stressed that the objective of the partnership went beyond enforcement, saying the two regulators were seeking to create a balanced environment where aviation safety and financial protection could work together.
He added that stronger collaboration would promote sustainable insurance practices, reduce avoidable regulatory challenges and support the long-term growth and resilience of the aviation industry.
Najomo also expressed confidence that the Joint Technical Committee would deliver measurable improvements in aviation insurance compliance and oversight.
He said the strengthened framework would provide greater protection for airlines, passengers, consumers, ground handlers and other stakeholders across the aviation ecosystem.
“Insurance is key. It is giving good confidence to all the airlines, giving good confidence to all stakeholders involved,” Najomo stated.
Also speaking, the Director of Air Transport Regulation at the NCAA, Babaoye-Iriobe, described aviation insurance as critical to the safety, stability and sustainability of the industry.
She said the NCAA remained committed to ensuring that appropriate insurance arrangements were maintained to protect passengers, operators, third parties, cargo and other interests against liabilities arising from aviation operations.
Iriobe noted that effective aviation insurance oversight required close cooperation between aviation and insurance regulators, alongside adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance.
She said officials from the NCAA and NAICOM had worked through the Joint Technical Committee to develop the MoU, which would strengthen regulatory cooperation, information sharing and the verification of aviation insurance compliance.
According to her, the agreement would also help the regulators address emerging challenges in the aviation insurance market while improving risk management and contract certainty.
Iriobe added that a stronger insurance framework could improve access to aircraft leasing and financing while enhancing the overall financial resilience of Nigerian aviation operators.
She commended the Minister of Aviation and Aerospace Development, Festus Keyamo, for his leadership and support for reforms in the sector.
She also welcomed the Commissioner for Insurance and the NAICOM delegation, describing the agreement as evidence of the two agencies’ shared commitment to effective regulation and the sustainable development of Nigeria’s aviation and insurance sectors.
She said the signing represented more than the execution of a regulatory document, stressing that it reinforced a collaborative framework designed to improve compliance, protect aviation stakeholders and strengthen confidence in Nigeria’s aviation industry.
