The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have entered into a new regulatory partnership aimed at strengthening insurance protection and risk management across Nigeria’s aviation industry.
The two agencies signed a Memorandum of Understanding (MoU) to improve coordination on insurance compliance, information sharing and oversight of aviation-related risks.
The agreement is expected to provide stronger protection for policyholders and air travellers while improving confidence among airlines, insurers, aircraft financiers, lessors and other stakeholders in the aviation value chain.
Speaking at the signing ceremony, Commissioner for Insurance, Olusegun Omosehin, described aviation as a strategically important component of the Nigerian economy, supporting trade, tourism, investment and broader economic activity.
He said adequate insurance coverage was more than a regulatory requirement for aviation operators, describing it as a critical mechanism for protecting lives, assets and businesses against potentially significant losses.
According to Omosehin, the partnership will enable both regulators to work more closely to ensure that insurance arrangements supporting aviation operations remain adequate, valid and capable of responding to emerging risks.
Joint committee to drive implementation
A key component of the agreement is the establishment of a Joint Technical Committee to coordinate implementation.
The committee will serve as the main platform for collaboration between the two agencies, with responsibilities including information exchange, periodic reviews of aviation insurance requirements and the resolution of operational challenges.
It will also coordinate engagements with industry stakeholders and promote training and capacity development for regulators and participants in the aviation and insurance sectors.
NAICOM said it would provide technical expertise and regulatory support to help the committee deliver on its mandate.
Omosehin said the framework would strengthen cooperation between the two regulators while improving the integrity of aviation insurance arrangements.
He also identified joint stakeholder engagement, training initiatives and periodic assessments of insurance coverage maintained by aviation operators as important elements of the new framework.
Focus on compliance and emerging risks
The agreement comes as regulators face the need to ensure that insurance arrangements keep pace with the risks associated with a complex aviation ecosystem.
Aviation operators require insurance protection for a range of potentially high-value risks, making the adequacy and validity of coverage an important component of sector resilience.
Under the new arrangement, NAICOM and NCAA are expected to work together more closely in monitoring compliance and sharing relevant information.
The collaboration could also make it easier for the agencies to identify gaps in insurance coverage and address regulatory issues affecting operators and other stakeholders.
For NAICOM, the partnership is also consistent with its mandate to promote a sound and reliable insurance industry.
The commission said it would support the NCAA with information on licensed insurers authorised to underwrite aviation risks while providing technical guidance on insurance-related matters.
Confidence and investment
Beyond regulatory compliance, NAICOM said the partnership could have wider implications for Nigeria’s aviation and insurance industries.
Omosehin said stronger regulatory coordination should help improve stakeholder confidence and create economic value by providing greater assurance that aviation risks are appropriately covered.
He stressed that the success of the MoU would depend on sustained engagement and cooperation between the two agencies rather than the signing of the agreement alone.
The commissioner said the two regulators have complementary responsibilities and that closer collaboration would ultimately benefit passengers, operators, insurers and the wider Nigerian economy.
The new framework is therefore expected to provide a more coordinated approach to aviation insurance oversight while strengthening protection for those exposed to risks within the sector.
