Yemisi Izuora
The Federal Executive Council (FEC) has approved ₦1.09 billion for insuring critical assets and personnel across Nigeria’s 16 federal airports, which marks a significant milestone in implementing insurance of government assets.
Minister of Aviation and Aerospace Development, Festus Keyamo, who disclosed this on Monday while briefing newsmen after the FEC meeting in Abuja, explained that the approval aligns with a directive from the Secretary to the Government of the Federation (SGF), which directed Ministries, Departments, and Agencies (MDAs) to insure critical government assets.
Additionally, the move is essential for Nigeria’s airports to secure International Civil Aviation Organization (ICAO) certification.
According to Keyamo: “This memo was prompted by Mr. President because we cannot continue to run our airports and critical assets, as precious and expensive as they are, without insurance cover”.
He atressed that many airport assets had remained uninsured for a long time, putting them at risk.
The newly approved insurance scheme, he said, will protect both infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN)
His words: “This approval ensures that not only are our critical airport assets covered, but also the personnel working in these environments. It is in line with global best labor practices to ensure workers in such sectors have insurance protection”.
The ₦1,097,137,102.48 insurance contract, which includes 7.5% VAT, will be executed over a one-year period, beginning once FAAN completes the premium payment.
Keyamo revealed that following a rigorous selection process, five leading Nigerian insurance firms were chosen to handle the coverage.
Leadway Assurance Company Limited will serve as the lead underwriter, while Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc will act as co-underwriters.
Keyamo reaffirmed that the approval underscores the Tinubu administration’s commitment to improving aviation safety, infrastructure security, and worker welfare in the country.