NCAA, NAICOM Strengthen Aviation Insurance Oversight in Nigeria

NCAA and NAICOM strengthen aviation insurance oversight

The Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to strengthen aviation insurance regulation, improve compliance and deepen coordination between the two regulators. The agreement also establishes a Joint Technical Committee on Aviation Insurance to support information sharing, technical cooperation and periodic reviews of insurance requirements.

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NAICOM disclosed the development in a statement issued in Lagos on Wednesday, September 10, 2026, describing the agreement as a framework for stronger regulatory oversight and risk protection across Nigeria's aviation industry.

Joint Committee to Improve Regulatory Coordination

Under the agreement, the Joint Technical Committee will serve as the main platform for implementing the objectives of the partnership between NCAA and NAICOM.

The committee will facilitate information exchange between the regulators, conduct periodic reviews of insurance requirements, address operational challenges and coordinate engagement with relevant stakeholders. It will also support capacity building among institutions and industry participants.

The arrangement is intended to reduce regulatory gaps that can arise when aviation safety oversight and insurance supervision operate separately.

Capt. Chris Najomo, Director-General of the NCAA, said the partnership would strengthen aviation safety, financial resilience and protection for passengers.

He noted that aviation operators face high-impact operational risks that require adequate financial protection through insurance arrangements that are robust, transparent and verifiable.

Insurance Compliance Remains a Key Regulatory Requirement

The NCAA's safety mandate operates alongside insurance requirements that protect operators, passengers and third parties against covered risks.

Najomo said NAICOM has provided technical assessments of the adequacy and viability of insurance policies obtained by aviation operators for several years. He linked the process to Part 18.14 of the Nigeria Civil Aviation Regulations 2023.

The new framework is therefore designed to deepen existing cooperation rather than create an entirely new regulatory responsibility.

The regulators also expect greater coordination to improve compliance while helping operators manage regulatory and operational challenges more efficiently.

NAICOM to Strengthen Verification of Aviation Insurance

Olusegun Omosehin, Chief Executive Officer of NAICOM, described the MoU as an important step towards coordinated supervision of aviation insurance.

Under the arrangement, NAICOM will provide technical expertise on insurance matters and information on insurers licensed to underwrite aviation risks. The commission will also support the verification of insurance arrangements maintained by aviation operators.

Periodic assessments of insurance coverage will form part of the wider oversight framework.

This approach could give regulators better visibility into whether operators maintain appropriate insurance protection and whether the insurers providing the coverage are authorised to underwrite aviation-related risks.

Focus on Passenger and Third-Party Protection

The agreement also places emphasis on compulsory aviation liability insurance, which provides an important layer of protection for passengers and third parties.

According to Omosehin, effective insurance arrangements ensure that compensation can be provided where legally due following covered aviation incidents. He said stronger insurance protection would help improve public confidence in air transportation and support business continuity.

For passengers, stronger oversight could provide greater confidence that operators have appropriate financial protection in place when aviation-related incidents occur.

For operators and investors, the framework could provide greater clarity around insurance compliance and risk management.

Potential Impact on Aviation Investment and Financing

Beyond passenger protection, the regulators see stronger insurance oversight as part of the broader financial infrastructure supporting Nigeria's aviation sector.

NAICOM said improved risk management and insurance protection could strengthen confidence among passengers, aviation operators, insurers, financiers, aircraft lessors and international partners.

Reliable insurance coverage can also matter to financiers and lessors because aviation assets carry significant financial exposure. Stronger regulatory verification may therefore contribute to a more predictable operating environment for companies providing capital or aircraft to Nigerian operators.

Omosehin said the framework could facilitate investment and improve access to financing for aviation operators.

Broader Economic Implications

The regulators' move comes as Nigeria seeks to strengthen the resilience of key economic sectors and attract greater private investment.

Aviation supports activity across several industries, including tourism, logistics, trade, business travel and transportation. Weak risk-management systems can increase uncertainty for companies operating within these interconnected sectors.

By improving cooperation between aviation and insurance regulators, the MoU could help establish clearer processes for insurance compliance and risk protection.

However, the effectiveness of the arrangement will depend on implementation, including the committee's ability to conduct regular assessments, resolve regulatory issues and ensure that operators comply with applicable requirements.

Outlook

The NCAA-NAICOM agreement marks a move towards more coordinated oversight of aviation insurance in Nigeria. The establishment of a Joint Technical Committee should provide a structured mechanism for information sharing, insurance verification, regulatory reviews and stakeholder engagement.

For aviation operators, financiers and investors, the key issue will be whether the framework translates into more consistent compliance and stronger risk management. For passengers and third parties, effective enforcement of insurance requirements could provide greater financial protection and confidence in the air transport system.

The success of the initiative will ultimately depend on sustained cooperation between the two regulators and consistent implementation of the agreed oversight measures.

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