NCAA, NAICOM sign deal to boost aviation insurance

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The Nigeria Civil Aviation Authority and the National Insurance Commission have signed a Memorandum of Understanding to strengthen aviation insurance oversight and improve protection for airlines, passengers and other stakeholders in the Nigerian aviation sector.

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The agreement, signed on Wednesday at the NCAA headquarters in Abuja, also provides for the establishment of a Joint Technical Committee on Aviation Insurance.

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Speaking at the event, the Director-General of the NCAA, Chris Najomo, said the partnership would strengthen aviation safety, financial resilience, regulatory compliance and protection of passengers and other aviation stakeholders.

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Najomo said the signing marked the culmination of a long-standing relationship between the two regulatory agencies.

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He said, “I am delighted to host this landmark event marking the formal signing of the Memorandum of Understanding between the Nigeria Civil Aviation Authority (NCAA) and the National Insurance Commission (NAICOM) on cooperation and collaboration in the regulation and oversight of aviation insurance in Nigeria.

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“Today’s event represents the culmination of a long-standing collaborative relationship between our two regulatory institutions and reinforces our shared commitment to strengthening aviation safety, financial resilience, regulatory compliance and the protection of the travelling public and other aviation stakeholders in addition to the formal establishment of a Joint Technical Committee on Aviation Insurance.”

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The NCAA boss noted that while aviation remained globally recognised as the safest mode of transportation, the industry was exposed to high-impact operational risks.

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“Aviation remains a paradoxical industry that is globally recognised as the safest mode of transportation, yet characterised by high-impact operational risks. As the Authority statutorily responsible for regulating and mitigating these risks at the State level, our safety mandate must be complemented by a robust, transparent, and verifiable insurance framework.

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“This partnership with NAICOM strengthens that foundation and reinforces the operational safety and financial resilience of the Nigerian aviation sector,” he said.

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Najomo disclosed that the NCAA and NAICOM had worked closely for several years, with the insurance regulator providing expert assessments on the adequacy and viability of insurance policies obtained by aviation operators.

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He said, “For several years, NCAA and NAICOM have worked closely, with NAICOM providing expert assessments on the adequacy and viability of insurance policies procured by aviation operators in compliance with Part 18.14 of the Nigeria Civil Aviation Regulations 2023.

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“This MoU we are signing today further deepens that cooperation, enhances stakeholder confidence, and supports cost-efficient operations while addressing challenges faced by Nigerian operators.”

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He said the objective of the partnership was not simply to enforce compliance but to create a balanced regulatory environment where aviation safety and financial protection complemented each other.

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“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.

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“Through effective collaboration, we intend to promote sustainable insurance practices, minimise avoidable regulatory and operational challenges, while supporting the long-term growth and resilience of Nigeria’s aviation industry, in line with the Renewed Hope Agenda of the Federal Government,” Najomo stated.

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The NCAA DG commended the joint technical teams of both agencies for their work in developing the agreement and expressed confidence that the Joint Technical Committee would deliver measurable improvements in aviation insurance compliance and oversight.

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“As we sign this MoU today, we reaffirm a simple but important principle: aviation safety must be supported by adequate financial protection. This partnership provides a stronger institutional framework for achieving both,” he said.

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Najomo added that the country’s aviation insurance framework has become stronger, providing greater protection for airlines, passengers, consumers and other stakeholders in the sector.

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He said the strengthened insurance framework had boosted confidence among operators and other stakeholders across the aviation ecosystem.

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According to him, “Insurance is very supportive and, of course, insurance is stronger now. The airlines, the passengers, the consumers are all well protected right now. And it gives good confidence to all stakeholders involved, including ground handlers, including all the stakeholders in the aviation ecosystem.

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“This collaboration we have done, this MOU we have signed, is what has been expected that it is strong right now. So insurance is key. It is giving good confidence to all the airlines, giving good confidence to all stakeholders involved.”

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Also speaking, the Director of Air Transport Regulation at the NCAA, Babaoye-Iriobe, said aviation insurance was integral to the safety, stability and sustainability of the industry.

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In her welcome address, she said, “Aviation insurance is integral to the safety, stability and sustainability of the aviation industry. As the sector regulator, the NCAA remains committed to ensuring that appropriate insurance arrangements are maintained to protect passengers, operators, third parties, cargo and other interests against liabilities arising from aviation operations.”

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Iriobe stressed that effective oversight of aviation insurance requires collaboration between aviation and insurance regulators, as well as adequate underwriting capacity, contract certainty, appropriate risk retention and regulatory compliance.

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“Effective aviation insurance oversight, however, requires strong collaboration between aviation and insurance regulators. It must also be supported by adequate underwriting capacity, contract certainty, appropriate risk retention and effective regulatory compliance and enforcement,” she said.

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She explained that officials of the NCAA and NAICOM, through the Joint Technical Committee on Aviation Insurance, worked together to develop the MoU.

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“The framework is intended to strengthen regulatory cooperation, information sharing and the verification of aviation insurance compliance, while promoting a more resilient and sustainable aviation industry,” Iriobe stated.

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According to her, the agreement would also provide a platform for tackling emerging challenges in the aviation insurance sector while improving risk management and contract certainty.

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She said, “The MoU also provides an important platform for addressing emerging challenges within the aviation insurance landscape and supporting an environment that enhances risk management, improves contract certainty, promotes access to aircraft leasing and financing, and strengthens the overall financial resilience of Nigerian aviation operators.”

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Iriobe specially acknowledged the Minister of Aviation and Aerospace Development, Festus Keyamo, for his leadership and support for reforms in the aviation industry.

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“I wish to specially acknowledge the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, for his leadership and continued support for reforms aimed at strengthening Nigeria’s aviation industry. I equally acknowledge our Director-General Civil Aviation for his unwavering support and commitment towards bringing this important initiative to fruition,” she said.

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She also welcomed the Commissioner for Insurance and the NAICOM delegation, describing the partnership as evidence of the two regulators’ commitment to effective regulation and sustainable growth.

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“Your partnership with the NCAA demonstrates our shared commitment to effective regulation and to the sustainable growth and development of Nigeria’s aviation and insurance sectors,” she added.

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Iriobe said the signing represented more than the execution of an agreement, noting that it reinforced a collaborative regulatory framework for improving compliance and confidence in the aviation industry.

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“Distinguished guests, today’s signing represents more than the execution of a document; it reinforces a collaborative regulatory framework designed to enhance compliance, protect aviation stakeholders and strengthen confidence in Nigeria’s aviation industry,” she said.

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