Two Federal agencies, the Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM), on Wednesday signed a landmark Memorandum of Understanding (MoU) on cooperation and collaboration in the regulation and oversight of aviation insurance in Nigeria.
The Director-General, NCAA, Capt. Chris Ona Najomo, and the Chief Executive Officer, NAICOM, Mr. Olusegun Ayo Omosehin did the signing at the NCAA Corporate Headquarters.
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In his remarks, Capt. Najomo said the epoch-making event culminated from a long-standing collaborative relationship between the two regulatory institutions and reinforces a shared commitment to strengthening aviation safety, financial resilience, regulatory compliance, and the protection of the travelling public and other aviation stakeholders.
The MoU also gave birth to the formal establishment of a Joint Technical Committee on Aviation Insurance co-chaired by representatives from the NCAA and NAICOM.
The DG noted that Aviation remains a paradoxical industry that is globally recognised as the safest mode of transportation, yet characterised by high-impact operational risks.
“As the Authority statutorily responsible for regulating and mitigating these risks at the State level, 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. For several years, NCAA and NAICOM have worked closely, with NAICOM providing expert assessments on the adequacy and viability of insurance policies procured by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023” he explained.
This MoU we are signing, he noted further, deepens the cooperation, enhances stakeholder confidence, and supports cost-efficient operations while addressing challenges faced by Nigerian operators.
He further stated that the collaboration will promote sustainable insurance practices, minimise avoidable regulatory and operational challenges, while supporting the long-term growth and resilience of Nigeria’s aviation industry, in line with the Renewed Hope Agenda of the Federal Government.
Capt. Najomo commended the Joint Technical Teams of the NCAA and NAICOM for the diligence and professionalism demonstrated in developing the MoU.
He expressed confidence that the Joint Technical Committee established under this framework will discharge its responsibilities diligently and ensure that the objectives of this partnership translate into measurable improvements in aviation insurance compliance and oversight.
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Also speaking, the NAICOM CEO, Mr. Omosehin said the occasion represents not only the strengthening of institutional cooperation, but also a clear affirmation of a shared regulatory commitment to the safety, integrity, and resilience of the Nigerian aviation ecosystem.
He said given the nature of aviation operations; effective insurance protection is not merely a regulatory requirement; it is an essential risk management tool that safeguards the lives of travellers, the property, and the businesses within the broader economy.
Mr Omosehin further stated it is imperative that regulators work together to ensure that insurance agreements supporting the aviation sector remain adequate, remain valid, and responsive to emerging risks.
He further explained that in the event of a serious accident in aviation, the level of protection that has been provided for people is resilient enough to put smiles on the faces of families of those who are affected, and businesses or entities that are also impacted.
We are laying the foundation of what I call the stronger framework of cooperation that will ultimately benefit the aviation sector, that will benefit the insurance industry, and, overall, the Nigerian economy, he noted.
Also commenting, Mrs. Olayinka Babaoye-Iriobe, the Director, Air Transport Regulation, NCAA, said the MoU must be supported by adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement.
She also indicated that the MoU provides an important platform for addressing emerging challenges within the aviation insurance landscape and supporting an environment that enhances risk management, improves contract certainty, promotes access to aircraft leasing and financing, and strengthens the overall financial resilience of Nigerian aviation operators.
Speaking at the sidelines, Mr. Folorunso Matthew Kayode, the Co-Chair representing NCAA said the MoU represents a significant milestone as it will unlock new possibilities in the industry based on the partnership, adding that the committee will work hard and deliver on the terms.
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Mr. Ajuyah Alfred, the Co-Chair representing NAICOM said that, besides strengthening the collaboration, it will give confidence to our partners, financiers, lessors, and even our financiers here in Nigeria that we have an insurance industry that works.
He said it is a confidence statement that when a claim occurs, we have an insurance industry that raises its billing and settles claims on time.