NCAA, NAICOM Sign Landmark MoU to Strengthen Aviation Insurance, Safety
Oru Leonard
The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to deepen cooperation in the regulation and oversight of aviation insurance in Nigeria.
The agreement was signed on Wednesday at the NCAA Corporate Headquarters by the Director-General, Civil Aviation, Capt. Chris Ona Najomo, and the Commissioner for Insurance and Chief Executive Officer, Mr. Olusegun Ayo Omosehin.
Speaking at the ceremony, Najomo said the MoU was the outcome of a long-standing collaborative relationship between the two regulatory institutions and demonstrated their shared commitment to strengthening aviation safety, financial resilience, regulatory compliance and protection of the travelling public and other stakeholders.
He said the agreement had also led to the formal establishment of a Joint Technical Committee on Aviation Insurance, to be co-chaired by representatives of the NCAA and NAICOM.
According to him, aviation remains a paradoxical industry, globally recognised as one of the safest modes of transportation while also being exposed to high-impact operational risks.
He stressed that the NCAA’s safety mandate must be complemented by a robust, transparent and verifiable insurance framework capable of mitigating the financial consequences of aviation-related risks.
Najomo noted that NCAA and NAICOM had, over the years, 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 said the new MoU would deepen the existing cooperation, enhance stakeholder confidence, support cost-efficient operations and address challenges confronting Nigerian aviation operators.
He added that the partnership would promote sustainable insurance practices, minimise avoidable regulatory and operational challenges, and support the long-term growth and resilience of Nigeria’s aviation industry in line with the Renewed Hope Agenda of the Federal Government.
Najomo commended the Joint Technical Teams of both agencies for their diligence and professionalism in developing the agreement, expressing confidence that the Joint Technical Committee would ensure that its objectives translated into measurable improvements in aviation insurance compliance and oversight.
In his remarks, the NAICOM Chief Executive Officer, Omosehin, described the occasion as a significant step towards strengthening institutional cooperation and reaffirming a shared regulatory commitment to the safety, integrity and resilience of Nigeria’s aviation ecosystem.
He said effective insurance protection was not merely a regulatory requirement but an essential risk-management instrument capable of safeguarding travellers, property and businesses within the wider economy.
Omosehin stressed the need for regulators to work together to ensure that insurance arrangements supporting the aviation sector remained adequate, valid and responsive to emerging risks.
He explained that in the event of a serious aviation accident, adequate insurance protection should be available to provide meaningful support to affected families, businesses and other entities.
According to him, the MoU lays the foundation for a stronger framework of cooperation that would benefit the aviation sector, the insurance industry and the Nigerian economy as a whole.
Also speaking, the Director, Air Transport Regulation, NCAA, Mrs. Olayinka Babaoye-Iriobe, said the implementation of the MoU must be supported by adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement.
She said the agreement would provide an important platform for addressing emerging challenges in aviation insurance while creating an environment that enhances risk management, improves contract certainty, facilitates access to aircraft leasing and financing, and strengthens the financial resilience of Nigerian aviation operators.
Speaking on the sidelines, the NCAA Co-Chair of the Joint Technical Committee, Mr. Folorunso Matthew Kayode, described the MoU as a significant milestone that would unlock new possibilities in the aviation industry.
He assured that the committee would work diligently to deliver on the terms of the agreement.
The NAICOM Co-Chair, Mr. Ajuyah Alfred, said the partnership would strengthen confidence among partners, financiers and aircraft lessors by demonstrating that Nigeria has an insurance industry capable of supporting the aviation sector.
He described the agreement as a confidence statement that the Nigerian insurance industry would be able to respond effectively to claims and settle legitimate claims promptly when they arise.
