Nigeria's Airports Lacking Insurance Coverage, Affecting Airlines

Strategic Insights -

Nigeria's airports have been struggling with maintenance issues, including inadequate wildlife control and runway deterioration, leading to damage to aircraft. Airlines have been bearing the cost of repairs, estimated at N15 billion annually. Industry stakeholders believe that compulsory insurance coverage for state assets and facilities, including airports, is essential to mitigate these risks.

Key Takeaways:

  • Overland Airways' Managing Director, Captain Edward Boyo, estimates that airlines lose N15 billion annually due to maintenance issues at Nigerian airports.
  • Captain Boyo called on the National Insurance Commission (NAICOM) to activate the new Insurance Act to make insurance cover compulsory for state assets and facilities, including airports.
  • NAICOM's Commissioner for Insurance, Olusegun Ayo Omosehin, assured that the commission is willing to engage with authorities to address the issue of compulsory insurance for airports.
  • NAICOM has implemented sound underwriting practices, including contract certainty, to ensure that insurers can meet their obligations.
  • PeakThrust Insurance Brokers Limited's Managing Director and CEO, Bimbo Onakomaiya, stated that there are approximately 370 registered aircraft in Nigeria, including 147 with the Nigerian Air Force and 170 domestic aircraft.
  • Onakomaiya emphasized the need for synergy between the insurance and aviation industries to mitigate risks and promote business confidence.

Statistics:

  • Nigeria's airports have approximately 31 airports, 92 airstreams, and 13 scheduled commercial aircraft operators.
  • There are about 370 registered aircraft in Nigeria, including 147 with the Nigerian Air Force and 170 domestic aircraft.
  • Airlines lose an estimated N15 billion annually due to maintenance issues at Nigerian airports.
  • NAICOM has implemented sound underwriting practices, including contract certainty, to ensure that insurers can meet their obligations.

Sources:

  • Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025)
  • Commission for Insurance and National Insurance Commission (NAICOM)
  • PeakThrust Insurance Brokers Limited
  • Overland Airways