The airport is managed by the Federal Airports Authority of Nigeria, FAAN.
Findings by Financial Vanguard revealed that several months after the fire incident, no insurance company has publicly acknowledged liability or claims exposure connected to the disaster, triggering serious concerns over the lack of insurance protection for one of Nigeria’s most strategic aviation assets.
The implication is far-reaching. Government may not only have to finance the rehabilitation of the burnt terminal — estimated to cost over N1 billion — but could also be responsible for compensating affected victims and settling all medical expenses linked to the incident.
The development comes despite an earlier approval by the Federal Executive Council of N712.26 billion for the comprehensive rehabilitation of Terminal One of the airport before the fire outbreak.
Commissioner for Insurance, Olusegun Omosehin, confirmed that no insurance company has paid claims in respect of the incident.
“I am not aware of the entities that covered the airport. If there was cover on that property, claims must be paid. That is where we stand.”
His remarks have intensified debate within the aviation and insurance industries over what experts describe as a dangerous regulatory gap.
Industry operators noted that while aviation regulations in Nigeria make it compulsory for all aircraft operating within the country to maintain valid insurance cover, there is presently no enforceable regulatory provision compelling airport operators to insure airport terminals and other critical infrastructure.
The development has once again brought concerns over risk management practices in the aviation sector to the forefront, especially regarding the protection of strategic national assets against fire outbreaks, operational hazards, and catastrophic losses.
Aviation and Marine Insurance Premiums Rise Despite Infrastructure Gap
Ironically, the controversy is unfolding at a time when aviation and marine insurance businesses are recording strong growth.
Findings by Financial Vanguard show that although the insurance industry’s total premium expanded by 50 percent in 2024, aviation and marine insurance premiums surged by an even higher 73.9 percent, climbing to N128.2 billion from N73.7 billion.
Claims within the segment also rose sharply during the year. Aviation and marine claims increased by 106 percent to N64.2 billion from N31.1 billion.
In 2025, the industry sustained its growth trajectory as total premium income rose by 47.5 percent, while aviation and marine insurance premiums increased by 45.9 percent to N187.1 billion from N128.2 billion.
However, industry operators clarified that much of the growth is being driven by the marine insurance segment, while aviation premiums are largely tied to aircraft insurance rather than airport infrastructure.
Ojikutu Faults NCAA Over Removal of Airport Insurance Requirement
Retired Group Captain and aviation analyst, John Ojikutu, lamented the absence of comprehensive insurance protection for Nigerian airports, warning that government could face enormous financial exposure in the event of major disasters.
“Statutory regulatory requirements should mandate airports to have a comprehensive insurance cover but that is not the case in the country today.”
Ojikutu disclosed that earlier provisions of the Nigerian Civil Aviation Regulations mandated international airports to maintain insurance coverage valued at about $250 million, while domestic airports were expected to carry insurance cover worth approximately $100 million.
“The regulations that came out in 2012, which were reviewed in 2022, made provision for our international airports to be insured for $250 million.
“However, in the new regulation, the insurance is not there. Whose fault? I will hold the Nigerian Civil Aviation Authority, NCAA, responsible.”
He stressed that the implications of operating uninsured airports could be devastating for government and businesses operating within airport environments.
“The impact of an uninsured airport would be huge financially, especially for government. Government would have to start allocating large sums of money to rebuild such infrastructure. Those who do business at the facility could also be forced out of business.”
‘Airports Must Be Insured’ — Chris Aligbe
Former General Manager, Public Affairs of the defunct Nigeria Airways and Chief Executive Officer of Belujane Konzult, Chris Aligbe, also emphasized the urgent need to insure airport facilities.
According to him, many countries now rely on private financing and concession arrangements for airport development, making insurance protection even more critical.
“It is very important that we insure our airports because in other countries, the amount of money that is being used to develop or renovate airports is usually not spent by governments these days.”
He pointed to countries in the Middle East and parts of Africa that either directly finance airport development or leverage alternative financing models.
“A few countries, who have money to spend, like the Middle East countries do. In Africa, there is Angola. Angola is an oil producing country, but I think it is not even doing so itself.
“Some other West African countries have done theirs themselves, but these are countries with just one airport. Their population is not very large, but the fact is that while new developments have shown that concession is one of the best ways to finance airport development, these airports must be insured.”
Sunny Adeda: Airlines Are Regulated, Airports Are Not
Former President of the Chartered Insurance Institute of Nigeria, Sunny Adeda, stated that aviation insurance is heavily influenced by the international insurance market because aviation itself is an international business.
“The Nigeria aviation sector ensures that every aircraft operating in the Nigeria airspace is insured, but such cannot be said of the airports.”
Adeda explained that aircraft are high-value assets with significant risk exposure, making strong financial capacity essential for insurers participating in aviation underwriting.
“Aircrafts are high valued and therefore value at risk is quite high. You need an insurer with a lot of financial strength to play in this class of business.”
He noted that strict local regulations already exist for airline operators seeking to participate in aviation business.
“The current local legislation in Nigeria is the Nigerian Civil Aviation Authority, NCAA. A carrier must submit his insurance certificate to the NCAA before they can operate a domestic flight.”
He further described civil aviation as one of the most tightly regulated industries globally.
“Civil aviation is a highly regulated industry all over the world. In Nigeria the NCAA is the regulator. Every single technical personnel, equipment and airport must be certified and monitored by competent regulatory agencies.”
According to him, the NCAA oversees airlines, pilots, crew members, airport facilities, navigation aids, service providers, and training institutions.
“The NCAA issues guideline requirements for grant of Airline Operating Permit, AOP. Amongst other requirement is that every airline operator providing air transport services for hire/reward must have adequate insurance for passenger/cargo and third party.”
He, however, criticized what he described as weak oversight regarding airport insurance.
“While these strict regulations are in place to keep airlines in check, the regulation of the airports is just left to the whims and caprices of FAAN, which is not supposed to be so.”
‘Government Assets Must Be Insured’ — Olatunde-Agbeja
Former President of the Nigerian Council of Registered Insurance Brokers, Babajide Olatunde-Agbeja, recalled that Nigerian airports were previously insured about a decade ago, although he could not confirm their current status.
“I recall that the airports used to be insured about 10-12 years ago, but I cannot say for certain now.”
He warned that the absence of insurance means the entire cost of rebuilding damaged infrastructure now falls on government.
“Consequently, the full brunt of renovating the airport will fall on the shoulders of government, which shouldn’t be.”
Drawing comparisons with recurring market fires across Nigeria, he said uninsured public infrastructure continues to create avoidable pressure on government finances.
“Look at all the fires that are happening in the markets. Markets are not insured. And everything falls on government. In many instances, state governments would say, ‘don’t worry, we will rebuild the market’. But what of the contents lost? The billions of Naira of contents lost in those market fires?”
He stressed the need for comprehensive protection of government-owned assets nationwide.
“We need to ensure that government assets are insured. When I was president of NCRIB, we liaised with government and they issued a circular mandating all parastatals, ministries, departments, and agencies to ensure that all government assets are insured. I don’t see any reason why government assets should not be insured. Government must insure all their assets, personnel, and liability.”