Indications have emerged that the Federal Government may bear the full financial burden resulting from the recent fire incident at the international terminal of the Murtala Muhammed International Airport due to the apparent absence of insurance cover for Nigerian airports.
The airport is managed by the Federal Airports Authority of Nigeria FAAN. Findings revealed that several months after the fire incident no insurance company has reported any claims exposure or liability connected to the disaster raising concerns about the lack of insurance protection for critical aviation infrastructure in Nigeria.
The development means the government may be responsible for financing the rehabilitation of the damaged terminal estimated at over one billion naira while also covering compensation and medical expenses for victims affected by the incident.
This situation comes despite an earlier approval by the Federal Executive Council of over N712 billion for the rehabilitation of Terminal One of the airport before the fire outbreak.
Commissioner for Insurance Olusegun Omosehin stated that he was unaware of any insurance claims relating to the airport fire adding that if there was valid insurance coverage claims should have been paid.
Industry experts explained that although aviation regulations make insurance compulsory for aircraft operating in Nigeria there is currently no strict requirement compelling airport operators to insure terminals and related infrastructure.
The development has renewed concerns over risk management practices within Nigeria’s aviation sector particularly regarding the protection of strategic national assets from disasters such as fire outbreaks.
Aviation analyst John Ojikutu criticised the absence of comprehensive insurance coverage for airports warning that government could suffer huge financial losses during major disasters. He argued that earlier aviation regulations required international airports to maintain insurance coverage of about 250 million dollars but claimed the provision was removed in recent regulations.
Insurance experts also stressed the importance of insuring airports noting that aviation infrastructure involves huge investments that should not be left unprotected.
Stakeholders further called on government agencies ministries and parastatals to ensure that all public assets are adequately insured against operational risks and disasters.
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