KEY POINTS
• NAICOM and NCAA sign MoU to improve aviation insurance compliance and risk protection.
• Joint committee will review insurance requirements and strengthen information sharing.
• Regulators say stronger insurance practices will improve passenger protection and industry stability.
MAIN STORY
The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have agreed to strengthen oversight of aviation insurance and improve financial protection against risks in the sector.
The two regulators signed a Memorandum of Understanding (MoU) on Wednesday in Abuja, establishing a framework for ensuring that insurance arrangements covering aviation operations remain adequate, valid and responsive to emerging risks.
Under the agreement, a joint committee will support cooperation between the regulators through information sharing, periodic reviews of insurance requirements, stakeholder engagements and capacity building.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, said the arrangement would strengthen coordination between the two institutions despite their separate statutory responsibilities.
He said insurance was essential to protecting passengers, airlines and third parties when accidents, liabilities and other losses occurred.
Omosehin said compulsory aviation liability insurance provided an important layer of protection for air travellers and other users of aviation services, while a stronger insurance framework could also support business continuity and confidence in the sector.
He said NAICOM would provide regulatory supervision and technical expertise to support the implementation of the agreement.
The commissioner added that the initiative formed part of broader efforts under the Federal Government’s Renewed Hope Agenda to support its ambition of building a $1 trillion economy by 2030.
Director General of the NCAA, Capt. Chris Najomo, said the partnership would link aviation safety with adequate financial protection and sustainable insurance practices.
He said the agreement was intended to address regulatory and operational challenges through cooperation rather than focusing solely on enforcement.
THE ISSUES
Aviation operators face financial exposure when accidents, liabilities and other losses occur. Insurance therefore provides a mechanism for meeting legitimate claims and protecting passengers, third parties and businesses from the financial consequences of such events.
The new framework also creates a more formal channel for the aviation and insurance regulators to share information and periodically assess whether existing insurance requirements remain suitable for emerging risks.
WHAT’S BEING SAID
“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.” – Chris Najomo
“Compulsory aviation liability insurance remains an important safeguard for air travellers and other users of aviation services.” – Olusegun Omosehin
“These measures will contribute significantly to improved regulatory effectiveness and enhanced confidence among stakeholders.” – Olusegun Omosehin
WHAT’S NEXT
The joint committee established under the partnership will coordinate information sharing, review insurance requirements, engage stakeholders and support capacity building among regulators and industry participants.
NAICOM also pledged to provide the technical expertise required to support the committee’s work.
BOTTOM LINE
NAICOM and NCAA have created a joint framework to strengthen aviation insurance compliance and risk protection. The regulators expect closer cooperation to improve passenger protection, regulatory effectiveness and confidence in Nigeria’s aviation sector.
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