Airlines Losing Money As FG Fails To Insure Airports Says Overland CEO

The Chief Executive Officer of Overland Airways, Capt. Edward Boyo, has blamed the Federal Government’s failure to insure airports for the financial losses suffered by airlines across the country.

Speaking at the 5th CHINET Aviacargo Conference in Lagos, Boyo said the Federal Airports Authority of Nigeria (FAAN) had neglected its duty to insure facilities, leaving airlines to bear the costs of damages caused by dilapidated runways, poorly maintained operational areas, and frequent bird strikes.

He noted that while aviation insurance often focuses on airlines, passengers, and luggage, the condition of airports—the root cause of many accidents—has been ignored. “We are talking about insuring airlines, passengers, and luggage, but what about the airports? Their runways and wildlife control are inadequate. They are not insured,” he said.

Boyo urged the National Insurance Commission (NAICOM) to enforce compulsory airport insurance to protect airlines from further losses and ensure government accountability.

Responding, NAICOM Commissioner Olusegun Omosehin, represented by Deputy Commissioner Usman Jankara, said recent reforms had given the regulator the authority to mandate airport insurance. He explained that compulsory insurance would safeguard public interest and guarantee compensation when accidents occur.

Managing Director of PeakThrust Insurance Brokers, Bimbo Onakomaiya, stressed the importance of synergy between the aviation and insurance industries. She revealed that Nigeria has about 370 registered aircraft, including 170 domestic planes, alongside 31 airports and 13 scheduled operators. She said such a large fleet required strong insurance backing and collaboration between regulators and operators.

She added that stronger synergy between both sectors would strengthen aviation safety and financial resilience.