Nigeria’s aviation operators are set to face closer scrutiny of their insurance arrangements following a new regulatory partnership between the National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA).
The two regulators have signed a Memorandum of Understanding (MoU) designed to strengthen oversight of aviation insurance, improve compliance and ensure that operators maintain adequate protection against the potentially high-cost risks associated with air transport.
The agreement was signed on Wednesday by NCAA Director-General of Civil Aviation, Capt. Chris Najomo, and NAICOM Commissioner for Insurance, Olusegun Ayo Omosehin.
The regulators said the partnership is expected to strengthen aviation safety, improve financial resilience and enhance protection for passengers, businesses and other stakeholders across the aviation value chain.
Aviation insurance moves higher up the regulatory agenda
Under the new framework, NAICOM and NCAA will deepen their collaboration in assessing the adequacy and validity of insurance policies held by aviation operators in accordance with the Nigeria Civil Aviation Regulations (Nig. CARs) 2023.
The move comes against the backdrop of an aviation industry where relatively low-frequency incidents can generate exceptionally large liabilities.
Najomo described aviation as an industry recognised globally for its safety record but one that remains exposed to high-impact operational risks.
He said stronger cooperation between the two regulators was necessary to improve safety, financial resilience and regulatory compliance while protecting the travelling public and other participants in the aviation ecosystem.
The framework was developed by a Joint Technical Committee, whose members were commended by the NCAA chief for their role in establishing the new regulatory structure.
Why the agreement matters to insurers
For the insurance industry, aviation represents one of the most technically demanding classes of risk.
Airlines and other aviation operators can face substantial exposure from aircraft damage, passenger injuries and fatalities, third-party liabilities, cargo losses and other operational incidents.
NAICOM Commissioner Omosehin stressed that aviation insurance should not be viewed simply as a box-ticking regulatory requirement.
He described it as an important risk-management mechanism for protecting lives, property, businesses and the wider economy from aviation-related losses.
The regulator’s position could signal a stronger focus on the quality and adequacy of aviation insurance policies, rather than simply whether an operator possesses an insurance certificate.
Passenger protection also in focus
The new partnership is expected to reinforce insurance protection across a broad range of aviation stakeholders.
According to NCAA Director of Air Transport Regulation, Olayinka Babaoye-Iriobe, adequate insurance remains essential to protecting passengers, airlines, cargo owners, third parties and other stakeholders against liabilities arising from aviation activities.
This places the adequacy of insurance coverage at the centre of the industry’s financial resilience.
For operators, insufficient coverage could leave significant liabilities exposed, while for insurers, stronger regulatory monitoring could create greater demand for technically sound underwriting and risk-management practices.
Pact comes as aviation market expands
The agreement comes at a time when Nigeria’s aviation market is recording stronger capacity growth.
Lagos’ Murtala Muhammed International Airport (MMIA) recorded the fastest growth in scheduled seat capacity among Africa’s 10 largest airports in September 2026, according to OAG data cited in a recent market analysis.
The airport recorded about 470,000 scheduled seats, representing a 24.1% year-on-year increase and roughly 90,600 additional seats compared with the same period in 2025.
The growth underscores the increasing scale of aviation activity in Nigeria—and, consequently, the importance of ensuring that the financial protection underpinning the sector keeps pace.
Bigger insurers could be better positioned
The regulatory development also comes shortly after the completion of Nigeria’s insurance industry recapitalisation exercise.
NAICOM said 43 insurance and reinsurance companies met the new minimum capital requirements by the July 31, 2026 deadline. The compliant operators comprised 23 non-life insurers, 10 life insurers, eight composite insurers and two reinsurers.
The higher capital thresholds are intended to strengthen insurers’ ability to underwrite larger and more complex risks.
That could be particularly relevant to aviation insurance, where individual claims can potentially run into substantial sums and may require insurers to rely on sophisticated risk-sharing and reinsurance arrangements.
A new era of closer regulatory cooperation
The NAICOM-NCAA agreement signals a move towards more integrated supervision of aviation risks in Nigeria.
Rather than treating aviation regulation and insurance compliance as separate issues, the two agencies are seeking to create a closer link between operational oversight and financial protection.
For airlines and other aviation operators, that could mean greater scrutiny of insurance adequacy and compliance.
For insurers, it could create opportunities for stronger participation in a growing aviation market while raising the bar for underwriting, claims capacity and risk management.
As Nigeria’s aviation industry expands, the message from the regulators is increasingly clear: growth in passenger numbers and flight capacity must be matched by equally strong financial protection for the risks that come with operating in the skies.
