LAGOS, Nigeria — The Federal Government may bear the full financial burden of rehabilitating parts of the Murtala Muhammed International Airport damaged by fire, following concerns that Nigerian airport infrastructure may not be covered by comprehensive insurance.
The fire broke out at Terminal One of the Lagos airport on February 23, 2026. The Federal Airports Authority of Nigeria, FAAN, confirmed the incident at the time, saying firefighters were deployed and that no loss of life was recorded. The terminal is managed by FAAN, the federal agency responsible for several airports across the country.
Financial Vanguard reported that months after the incident, no insurance company had disclosed any claims exposure or liability linked to the airport fire, raising questions over whether the damaged facility was insured. The report said the absence of confirmed insurance cover could leave government responsible for repairs, compensation and medical costs arising from the incident.
The concern comes despite earlier Federal Executive Council approval of ₦712.26 billion for the comprehensive rehabilitation of Terminal One before the fire. Industry sources say repair of the damaged section alone could cost more than ₦1 billion, increasing pressure on public finances at a time when aviation infrastructure already requires heavy investment.
Commissioner for Insurance, Olusegun Omosehin, said he was not aware of any insurer covering the airport property. “If there was cover on that property, claims must be paid. That is where we stand,” he said.
Aviation and insurance experts said Nigeria’s current regulatory framework makes insurance compulsory for aircraft operators, passengers, cargo and third-party liabilities, but does not clearly compel airport operators to insure terminals and other infrastructure. They warned that this gap exposes critical national assets to avoidable fiscal risk.
Retired Group Capt. John Ojikutu said earlier aviation regulations required international airports to maintain insurance cover of about $250 million, while domestic airports were expected to hold about $100 million. He said later regulatory reviews removed that requirement and faulted the Nigerian Civil Aviation Authority for the omission.
Other experts, including former Nigeria Airways spokesman Chris Aligbe and former insurance brokers’ leader Babajide Olatunde-Agbeja, argued that airports should be insured because public funds alone should not carry the cost of disasters affecting strategic assets.
The controversy has reopened debate over risk management in Nigeria’s aviation sector. Analysts say the Lagos fire should prompt a review of insurance rules for airports, stronger asset protection policies and clearer accountability between FAAN, NCAA and the insurance regulator.
For now, unless insurance cover is confirmed, taxpayers may ultimately bear the cost of rebuilding and compensation.
