The Federal Government may be required to bear the full cost of repairing the fire-damaged international terminal at Murtala Muhammed International Airport, following concerns that the facility may not have been covered by insurance at the time of the incident.
The airport is managed by the Federal Airports Authority of Nigeria, and findings suggest that no insurance company has reported any claims exposure related to the fire, raising questions about risk protection for key aviation infrastructure in the country.
Reports indicate that the cost of rehabilitation is estimated at over ₦1 billion, in addition to potential compensation for victims and medical expenses arising from the incident. This comes even as the government had previously approved ₦712.26 billion for broader rehabilitation works at the terminal before the fire outbreak.
The Commissioner for Insurance, Olusegun Omosehin, stated that he is not aware of any insurance cover for the damaged airport facility, adding that claims can only be paid if proper coverage exists.
Industry experts argue that while aircraft operating in Nigeria are required to have insurance, there is no clear regulatory obligation mandating airports themselves to be insured, creating a major gap in risk management for critical infrastructure.
Stakeholders in the aviation and insurance sectors have warned that the absence of insurance coverage could expose the government to heavy financial losses in the event of disasters, while also delaying recovery and reconstruction efforts.
They further emphasized the need for stricter enforcement of insurance requirements for airports, noting that previous regulations once required significant coverage for both international and domestic airports, but such provisions appear to have weakened over time.
