The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have moved to deepen regulatory cooperation in a development expected to strengthen aviation insurance, improve passenger protection and boost investor confidence in Nigeria’s aviation sector.
The two regulators signed a Memorandum of Understanding (MoU) to establish a coordinated framework for compliance, risk protection and information sharing across the aviation and insurance industries.
The agreement comes as aviation plays an increasingly important role in commerce, tourism, investment and national development, with airlines, aircraft financiers, lessors and other operators facing growing demands for effective risk management.
Olusegun Omosehin, Commissioner for insurance/CEO of NAICOM, said at the MoU signing ceremony in Abuja that the partnership would ensure insurance arrangements supporting aviation remain adequate, valid and responsive to emerging risks.
“Through this partnership, we are advancing 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 MoU establishes a Joint Technical Committee to drive implementation. The committee will facilitate information sharing, periodically review insurance requirements, address operational challenges, coordinate stakeholder engagements and promote capacity building among regulators and industry participants.
For Nigeria’s aviation market, the stronger regulatory interface could have significant business implications, particularly for operators, financiers and aircraft lessors.
Omosehin said aviation is a capital-intensive industry in which airlines and aircraft owners require adequate insurance protection to manage risks associated with aircraft, passengers and third-party liabilities.
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 commissioner said the agreement goes beyond compliance, describing it as a mechanism for protecting policyholders and air travellers, creating economic value and strengthening investor confidence.
“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,” he said.
Chris Najomo, director general of NCAA, said the agreement would strengthen the financial resilience of Nigeria’s aviation sector while supporting more efficient operations.
“This MoU further deepens that cooperation, enhances stakeholder confidence, and supports cost-efficient operations while addressing challenges faced by Nigerian operators,” Najomo said.
He said aviation’s high-impact operational risks made a robust and verifiable insurance framework essential to the industry.
“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,” he said.
Najomo said the partnership was also intended to promote sustainable insurance practices and reduce avoidable regulatory and operational challenges.
“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,” he said.
A key component of the framework is compulsory aviation liability insurance, which provides financial protection for passengers and third parties where compensation is legally due.
For airlines, stronger insurance oversight can support business continuity by ensuring that significant liabilities arising from accidents and other incidents do not translate into destabilising financial shocks.
The framework could also improve Nigeria’s attractiveness to aviation financiers and lessors, who require credible insurance and regulatory oversight before committing capital to aircraft acquisition and leasing.
By improving verification, information exchange and regulatory coordination, the NAICOM-NCAA framework is expected to make Nigeria’s aviation environment more predictable for local and international stakeholders.
Najomo said the ultimate objective was to create a balanced regulatory environment where safety and financial protection reinforce each other, supporting the long-term growth and resilience of the industry.
Omosehin, emphasising further, said the partnership would also help Nigeria’s aviation sector 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,” Omosehin said.
The pact aligns with the Federal Government’s broader ambition of building a $1 trillion economy by 2030, with NAICOM identifying effective risk management and strong insurance protection as important enablers of investment, enterprise and long-term economic development.
With the Joint Technical Committee now established, the MoU provides a platform for both regulators to translate closer cooperation into stronger insurance compliance, improved risk management and a more resilient Nigerian aviation market.
