NCAA, NAICOM Sign Deal To Boost Aviation Insurance, Investor Confidence

The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) aimed at strengthening cooperation in the regulation and supervision of aviation insurance in Nigeria.

According to Ireporter Online, the agreement was signed at the NCAA headquarters in Abuja on Wednesday, with both regulatory agencies also establishing a Joint Technical Committee on Aviation Insurance to enhance collaboration.

Director-General of Civil Aviation, Captain Chris Najomo, said the partnership would help improve aviation safety, strengthen financial resilience, promote regulatory compliance and enhance protection for passengers and other stakeholders.

Najomo noted that although aviation is widely regarded as one of the safest means of transportation globally, the industry faces significant operational risks that can have serious financial consequences.

He stressed the importance of having a transparent and verifiable insurance system capable of complementing the NCAA’s regulatory responsibility for managing aviation-related risks.

According to him, the collaboration is designed not only to ensure compliance but also to create a balanced regulatory environment where aviation safety and financial protection work together.

Najomo added that the partnership would encourage sustainable insurance practices, reduce avoidable regulatory challenges and contribute to the long-term growth and resilience of Nigeria’s aviation industry.

The Commissioner for Insurance at NAICOM, Olusegun Omosehin, described the agreement as a demonstration of the shared responsibility of both regulators to protect passengers, businesses and other stakeholders within the aviation sector.

Omosehin said aviation insurance should be viewed beyond a mere regulatory requirement, describing it as an important risk-management mechanism for safeguarding lives, property and businesses.

He explained that the newly established Joint Technical Committee would help ensure that insurance arrangements supporting the aviation industry remain adequate, valid and responsive to emerging risks.

Omosehin also stated that Nigeria’s insurance industry had become better capitalised and regulated, giving it greater capacity to meet its obligations to the aviation sector.

He disclosed that NAICOM had introduced concessions on certain insurance requirements relating to aircraft leasing as part of efforts to support the industry and provide greater assurance to financiers.

The commissioner, however, emphasised that the effectiveness of the MoU would depend on sustained engagement, cooperation and mutual trust between the two regulatory bodies.

The agreement is expected to strengthen confidence in Nigeria’s aviation insurance framework while supporting safer, more financially resilient and investment-friendly operations across the sector.