September 9, 2026 by and Priscilla Ezumah

The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have moved to tighten oversight of aviation insurance in Nigeria by establishing a Joint Technical Committee to review insurance requirements, verify operators’ cover, and promote greater information sharing between the two regulators.

The committee, established under a Memorandum of Understanding (MoU) signed by the two agencies in Abuja on Wednesday, will also address operational challenges, coordinate engagement with industry stakeholders and support capacity building for regulators and aviation operators.

The new arrangement is expected to provide a stronger regulatory framework to ensure that insurance policies maintained by airlines and other aviation operators are adequate, valid, and capable of responding to the risks associated with air transport.

Speaking at the signing ceremony, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, said the partnership would deepen cooperation between the two regulators and create a more coordinated system for compliance, risk protection and information sharing.

He said the agreement was important because aviation insurance goes beyond meeting a regulatory requirement, describing it as an essential risk management tool for protecting lives, property, businesses and the wider economy.

According to him, the nature of aviation operations makes it necessary for regulators to work together to ensure that insurance arrangements supporting the sector remain adequate and responsive to emerging risks.

Under the new framework, NAICOM will provide regulatory oversight and technical expertise on insurance matters, including verifying aviation insurance arrangements and providing information on licensed insurers authorised to underwrite aviation risks.

The Commissioner said the Joint Technical Committee would serve as the “engine room” for implementing the MoU’s objectives.

He said the committee would facilitate information exchange between the agencies, conduct periodic reviews of insurance requirements, tackle operational challenges, coordinate stakeholder engagements, and promote capacity building for regulators and industry participants.

Omosehin assured the NCAA of NAICOM’s commitment to providing the technical support the committee needs to carry out its responsibilities effectively.

The Commissioner said NAICOM was particularly encouraged by provisions covering information exchange, joint stakeholder engagement, training and the periodic assessment of insurance cover maintained by operators within the aviation ecosystem.

He said these measures would improve regulatory effectiveness and strengthen stakeholder confidence.

The development is significant for an aviation industry where accidents and other operational incidents can expose airlines, passengers, financiers, lessors, service providers and third parties to potentially substantial financial liabilities.

The Commissioner said the partnership was therefore not limited to regulatory compliance but was “fundamentally about protecting policyholders, safeguarding air travellers and third parties, creating economic value and strengthening investor confidence in Nigeria’s aviation ecosystem.”

He said compulsory aviation liability insurance remains an important safeguard for air travellers and other users of aviation services because it provides assurance that compensation would be available where there is a legally established liability.

“Insurance provides critical financial protection to passengers, airlines, financiers, lessors, service providers, and members of the public by ensuring that legitimate liabilities, accidents, and losses are promptly and fairly addressed when they arise,” the NAICOM boss said.

Mr. Olusegun Ayo Omosehin said a strong aviation insurance system could also promote public confidence in air transportation, support business continuity, facilitate investment and improve access to financing.

He linked the initiative to the Federal Government’s ambition of building a $1 trillion economy by 2030, saying effective risk management and strong insurance protection would be important to investment, enterprise, consumer protection and sustainable economic growth.

The Director-General of the NCAA, Captain Chris Najomo, said the MoU represented the culmination of years of cooperation between the two institutions and would strengthen aviation safety, financial resilience, regulatory compliance and protection of the travelling public.

Najomo said aviation was a “paradoxical industry” because, although it is globally recognised as the safest mode of transportation, it is also characterised by operational risks that can produce severe financial consequences.

He said the NCAA’s statutory responsibility for aviation safety needed to be complemented by a strong, verifiable insurance framework. “Aviation safety must be supported by adequate financial protection. This partnership provides a stronger institutional framework for achieving both,” he said.

The NCAA Director-General disclosed that NAICOM had for several years provided expert assessments of the adequacy and viability of insurance policies procured by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.

The new agreement, he said, would take that cooperation to a higher level by providing a more structured framework for collaboration between the two regulators.

Najomo said the objective was not simply to punish or enforce compliance but to create a balanced regulatory environment in which aviation safety and financial protection reinforce each other.

He said the collaboration would promote sustainable insurance practices, reduce avoidable regulatory and operational challenges and support the long-term growth and resilience of Nigeria’s aviation industry.

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