The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to deepen cooperation on regulating and overseeing aviation insurance in Nigeria.

A Joint Technical Committee on Aviation Insurance, to strengthen collaboration between the two institutions, was also established during the signing of the MoU at the NCAA headquarters in Abuja on Wednesday.

The Director-General of Civil Aviation, Capt. Chris Najomo, said the partnership would strengthen aviation safety, financial resilience, regulatory compliance and the protection of the travelling public and other aviation stakeholders.

He noted that while aviation remained globally recognised as the safest mode of transportation, the industry was characterised by high-impact operational risks, making a transparent and verifiable insurance framework essential.

According to him, the NCAA’s statutory responsibility for regulating and mitigating aviation risks must be complemented by effective financial protection.

He said: “Aviation remains a paradoxical industry that is globally recognised as the safest mode of transportation, yet characterised by high-impact operational risks.

“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 added that the partnership would promote sustainable insurance practices, reduce avoidable regulatory challenges and support the long-term growth and resilience of the aviation industry.

The Commissioner for Insurance of NAICOM, Olusegun Omosehin, said the agreement was a demonstration of the regulators’ shared responsibility to protect passengers, businesses and other stakeholders in the aviation ecosystem.

Omosehin said insurance protection in aviation was beyond regulatory compliance, describing it as an essential risk-management tool.

He said: “Given the nature of aviation operation, effective insurance protection is not merely a regulatory requirement. It is an essential risk management tool that safeguard the lives of travellers, the property, and the businesses”.

He said the committee would help ensure that insurance arrangements supporting the aviation sector remained adequate, valid and responsive to emerging risks.

Omosehin also assured stakeholders that the Nigerian insurance industry was better capitalised and regulated and capable of meeting its obligations.

He disclosed that NAICOM has also made concessions on some insurance requirements relating to aircraft leasing as part of efforts to support the aviation sector and provide greater comfort to financiers.

He stressed that the success of the MoU would depend on sustained engagement and mutual trust between both regulators.

The Co-chairmen of the Joint Technical Committee, Folorunso Kayode of the NCAA and Alfred Ajuyah of NAICOM, said the committee would strengthen the agencies’ existing collaboration and improve confidence in Nigeria’s insurance market.

Kayode said the initiative would reassure financiers, aircraft lessors and banks that the country’s insurance industry was capable of settling legitimate claims promptly.

“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 an insurance policies that works”. (The Nation)