…Set up joint committee on compliance, information sharing
By Emma Ujah, Abuja Bureau Chief
ABUJA — The National Insurance Commission (NAICOM) and the Nigeria Civil Aviation Authority (NCAA) have signed a Memorandum of Understanding, MoU, to strengthen insurance regulation and compliance in Nigeria’s aviation industry.
The agreement, signed in Abuja yesterday by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, and the Director-General of the NCAA, Capt. Chris Najomo, is expected to enhance passenger protection, improve regulatory compliance and boost investor confidence in the sector.
The MoU establishes a framework for closer collaboration between the two agencies in the oversight of aviation insurance and enforcement of statutory requirements.
Speaking at the signing ceremony, Omosehin described the agreement as a major milestone in institutional cooperation between the regulators, noting that although their statutory responsibilities were distinct, they were complementary in safeguarding the integrity and resilience of the aviation sector.
He said the partnership would provide a coordinated framework for compliance monitoring, risk protection, information sharing and stakeholder engagement, thereby strengthening confidence among airlines, insurers, financiers, aircraft lessors, passengers and other industry stakeholders.
According to him, aviation occupies a strategic position in the Nigerian economy, facilitating commerce, tourism, investment and national development, making effective insurance protection indispensable.
Omosehin said adequate insurance coverage remained a critical risk-management tool for protecting lives, property, businesses and the wider economy.
He explained that under the new arrangement, NAICOM would provide technical support and regulatory oversight on aviation insurance matters, including verification of insurance policies and confirmation of licensed insurers authorised to underwrite aviation risks.
A major component of the agreement is the establishment of a Joint Technical Committee to drive its implementation.
Omosehin said the committee would facilitate information sharing between the agencies, periodically review insurance requirements in the aviation industry, address operational challenges, coordinate stakeholder engagements and organise capacity-building programmes for regulators and industry operators.
He assured the NCAA of NAICOM’s commitment to providing the technical expertise required for the effective functioning of the committee.
The commissioner added that the partnership would promote joint training programmes, exchange of regulatory information and periodic assessment of insurance cover maintained by aviation operators.
He said the measures would improve regulatory effectiveness and deepen confidence in Nigeria’s aviation insurance framework.
Omosehin noted that the success of the MoU would depend on sustained engagement, mutual trust and a shared commitment to regulatory excellence by both institutions.
He said the collaboration went beyond regulatory compliance, stressing that it was fundamentally aimed at protecting policyholders, air travellers and third parties, while strengthening investor confidence in the aviation industry.
The NAICOM boss said compulsory aviation liability insurance provided critical financial protection by ensuring that legitimate claims arising from accidents and other liabilities could be settled, thereby promoting public confidence in air transportation, facilitating access to finance and supporting business continuity.
He added that a strong insurance framework would contribute to the Federal Government’s aspiration of building a $1 trillion economy by supporting investment, enterprise development and long-term economic growth through effective risk management.
Also speaking, NCAA Director-General, Najomo, said the agreement underscored the shared commitment of both agencies to strengthening the safety, integrity and resilience of Nigeria’s aviation ecosystem.
He said enhanced cooperation between the aviation and insurance regulators would improve compliance, deepen stakeholder confidence and ensure that Nigeria’s aviation industry remained aligned with applicable international conventions and global best practices.
Najomo added that effective collaboration between the institutions would safeguard passengers, protect third parties, support stable aviation operations and promote a safer, more resilient and trusted air transport system.
He said, “As Nigeria pursues the attainment of a one trillion-dollar economy ($1 trillion economy by 2030) under the Renewed Hope Agenda, effective risk management and strong insurance protection must remain key enablers of investment, enterprise, consumer protection, and long-term national development.”
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