NCAA, NAICOM Seal Pact to Enhance Aviation Insurance, Strengthen Investor Confidence
The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have formalized a Memorandum of Understanding (MoU) aimed at bolstering regulatory collaboration and improving the oversight of aviation insurance in the country.
The pact, signed at the NCAA’s Abuja headquarters on Wednesday, also birthed a Joint Technical Committee on Aviation Insurance to ensure sustained inter-agency cooperation.
Capt. Chris Najomo, Director-General of Civil Aviation, highlighted that the alliance is crafted to reinforce aviation safety, financial resilience, and regulatory adherence, while safeguarding the interests of the travelling public and industry players. He pointed out that despite aviation being globally acknowledged as the safest form of transport, it remains inherently exposed to high-stakes operational risks, necessitating a transparent and verifiable insurance framework. He noted that the NCAA’s mandate to mitigate aviation risks requires complementary financial safeguards.
“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 stated. He added that the partnership would promote sustainable insurance practices, minimize regulatory bottlenecks, and support the long-term growth of the aviation sector.
On his part, NAICOM’s Commissioner for Insurance, Olusegun Omosehin, described the MoU as a reflection of the regulators' collective duty to protect passengers, businesses, and other stakeholders within the aviation ecosystem. He emphasized that aviation insurance transcends regulatory formalities, serving as a critical risk mitigation mechanism.
Omosehin revealed that NAICOM has introduced regulatory flexibilities regarding specific insurance prerequisites for aircraft leasing to support the sector and provide greater reassurance to financiers. He stressed that the MoU's success hinges on continuous dialogue and mutual trust between both agencies.
“Given the nature of aviation operations, effective insurance protection is not merely a regulatory requirement. It is an essential risk management tool that safeguards the lives of travellers, their property, and businesses,” Omosehin said.
The Joint Technical Committee, led by Co-chairmen Folorunso Kayode of the NCAA and Alfred Ajuyah of NAICOM, is tasked with fortifying existing partnerships and enhancing trust in Nigeria’s insurance market.
Kayode noted that the initiative would give financiers, aircraft lessors, and domestic banks the assurance that the nation’s insurance sector can promptly settle legitimate claims.
“Besides strengthening the collaboration, it’s also to give confidence to our partners, financiers, lessors, and even our banks here in Nigeria that we have insurance policies that work,” Kayode said.