NCAA, NAICOM tighten aviation insurance oversight with joint

Nigeria’s aviation and insurance regulators have strengthened cooperation on aviation insurance with the establishment of a Joint Technical Committee, in a move aimed at tightening compliance, improving risk protection and strengthening financial confidence in the country’s air transport sector.

The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) formalised the partnership on Wednesday, September 9, 2026, with the signing of a Memorandum of Understanding (MoU) at the NCAA headquarters in Abuja.

The agreement provides a structured framework for cooperation between the two regulators on insurance oversight, information sharing, technical assessments, stakeholder engagement and capacity building.

Director-General of the NCAA, Captain Chris Najomo, said the arrangement would strengthen aviation safety, financial resilience and regulatory compliance while improving protection for passengers, third parties and other stakeholders.

Najomo said aviation, despite being regarded globally as one of the safest forms of transportation, remained exposed to high-impact operational risks that required adequate financial protection.

He said the NCAA’s safety mandate must therefore be supported by an insurance framework that is “robust, transparent, and verifiable.”

The NCAA chief said the two institutions had already worked together for several years, with NAICOM providing technical assessments of the adequacy and viability of insurance policies obtained by aviation operators under Part 18.14 of the Nigeria Civil Aviation Regulations 2023.

According to him, the new agreement would deepen the existing relationship while helping to reduce avoidable regulatory and operational challenges faced by Nigerian operators.

“Our objective is not merely to enforce compliance, but to establish a balanced regulatory environment in which aviation safety and financial protection complement each other,” Najomo said.

The Joint Technical Committee on Aviation Insurance will serve as the main implementation mechanism under the MoU. It will facilitate information exchange, periodically review insurance requirements, address operational challenges, coordinate stakeholder engagements and support capacity development.

Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, said the partnership would advance a more coordinated framework for compliance, risk protection and stakeholder confidence.

He said aviation insurance should not be viewed merely as a statutory requirement but as a critical risk-management instrument capable of protecting lives, property, businesses and the wider economy.

The MoU also provides for closer exchange of information on insurers licensed to underwrite aviation risks and periodic assessment of insurance cover maintained by operators.

The strengthened oversight has important implications for the aviation business because insurance provides financial protection against aircraft losses, passenger liabilities and third-party claims, while also supporting airlines that depend on aircraft financing and leasing.

Aircraft financiers and lessors typically require adequate insurance cover as part of financing and leasing arrangements, making the quality and credibility of aviation insurance an important element of airline access to capital.

For passengers and members of the public, effective compulsory liability insurance provides financial protection where compensation becomes legally due following an aviation incident.

NAICOM’s prudential framework also requires insurers and co-insurers to undertake risk and exposure assessments before accepting aviation business and ensure that aviation liability policies meet applicable passenger-liability requirements.

The regulators said the partnership would encourage sustainable insurance practices while improving the integrity of aviation insurance arrangements.

Najomo said the initiative was aligned with the Federal Government’s Renewed Hope Agenda and the broader goal of building a more resilient aviation industry.

He said the ultimate principle behind the agreement was straightforward: aviation safety must be supported by adequate financial protection.

The immediate challenge, however, will be implementation. The effectiveness of the Joint Technical Committee will depend on timely information sharing, consistent verification of policies and effective enforcement of insurance requirements.

A stronger framework could reduce uncertainty for airlines, improve confidence among insurers and aircraft financiers, strengthen passenger protection and ultimately make insurance a more effective component of Nigeria’s aviation safety and investment architecture.