- The NCAA and NAICOM have signed an MoU to strengthen aviation insurance oversight and improve protection for passengers, airlines, cargo owners and other industry stakeholders.
- The agreement provides for a Joint Technical Committee on Aviation Insurance to improve regulatory coordination, information sharing and verification of insurance compliance.
- Regulators say the partnership will strengthen financial resilience and safety while helping Nigerian airlines address insurance-related regulatory and operational challenges.
September 10 (THEWILL) – The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to strengthen aviation insurance oversight and improve protection for airlines, passengers and other stakeholders in Nigeria’s aviation industry.
The agreement, signed at the NCAA headquarters in Abuja, also provides for the establishment of a Joint Technical Committee on Aviation Insurance to deepen cooperation between the two regulators.
Speaking at the signing, NCAA Director-General Chris Najomo said the partnership would strengthen aviation safety, financial resilience, regulatory compliance and protection for the travelling public.
He said the agreement formalised a long-standing relationship between both agencies, with NAICOM previously providing expert assessments of the adequacy and viability of insurance policies obtained by aviation operators.
Regulators Target Stronger Insurance Compliance
Najomo said aviation’s exposure to high-impact operational risks made a robust and verifiable insurance framework necessary alongside safety regulation.
“Aviation remains a paradoxical industry that is globally recognised as the safest mode of transportation, yet characterised by high-impact operational risks”, he said.
According to him, the new framework would deepen existing cooperation and enhance stakeholder confidence while supporting cost-efficient operations for Nigerian aviation businesses.
The NCAA has been working with NAICOM on insurance requirements under Part 18.14 of the Nigeria Civil Aviation Regulations 2023, including assessments of insurance policies obtained by operators.
Najomo said the objective was not simply to enforce compliance but to create a regulatory environment in which aviation safety and financial protection work together.
He added that stronger collaboration could promote sustainable insurance practices, minimise avoidable regulatory and operational challenges and support the long-term resilience of the industry.
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Joint Committee To Improve Oversight
The Director of Air Transport Regulation at the NCAA, Babaoye-Iriobe, said aviation insurance was fundamental to the safety, stability and sustainability of the industry.
She said appropriate insurance arrangements were necessary to protect passengers, operators, third parties, cargo and other interests against liabilities arising from aviation operations.
According to Iriobe, effective aviation insurance oversight requires close cooperation between aviation and insurance regulators, as well as adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory enforcement.
She said officials from both agencies worked together through the Joint Technical Committee to develop the MoU.
The committee will provide a framework for stronger regulatory cooperation, information sharing and verification of aviation insurance compliance.
Partnership Targets A Resilient Aviation Sector
The agreement comes as Nigerian airlines continue to operate in an environment characterised by high operating costs, foreign exchange pressures, aircraft financing challenges and significant insurance requirements.
For operators, effective coordination between the NCAA and NAICOM could help reduce regulatory uncertainty and ensure that insurance policies meet the requirements of aviation authorities while providing adequate financial protection.
For passengers and other stakeholders, stronger oversight is expected to improve confidence that operators maintain appropriate coverage against aviation-related liabilities.
Najomo said the partnership would also support a more balanced regulatory environment where safety obligations and financial protection reinforce each other.
The regulators are expected to use the new framework to improve monitoring and information exchange while addressing gaps in compliance and insurance verification.
The development also highlights the importance of adequate insurance capacity as Nigeria seeks to expand its aviation industry and strengthen the financial resilience of local operators.
By formalising cooperation between the two regulators, the MoU is expected to provide a more coordinated approach to aviation insurance oversight and reduce potential gaps between safety regulation and financial protection.
The ultimate objective, the NCAA said, is to support a safer, more financially resilient and sustainable Nigerian aviation sector while protecting the interests of passengers, operators and other stakeholders.
