Federal Gov’t Approves N1.09bn Insurance Cover For Airports

The federal government has approved a ₦1.09 billion insurance package for critical assets and personnel across all federal airports in Nigeria.

Minister of Aviation and Aerospace Development, Festus Keyamo announced the decision on Monday after the Federal Executive Council (FEC) presided over by President Bola Tinubu at the Presidential Villa.

Keyamo said the approval aligns with a directive from the Secretary to the Government of the Federation (SGF), which mandates Ministries, Departments, and Agencies (MDAs) to insure critical government assets.

Additionally, the measure is a key requirement for Nigeria’s airports to obtain certification from the International Civil Aviation Organisation (ICAO).

“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,” Keyamo said.

He added that, “Most of these assets have remained uninsured for a long time. This approval ensures both infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN) are covered, in line with global best labor practices.”

The insurance contract, valued at ₦1,097,137,102.48 (inclusive of 7.5% VAT), will be executed over a one-year period, commencing upon premium payment by FAAN.

The minister said following a rigorous selection process, five leading Nigerian insurance firms were chosen for the coverage.

He gave the insurance firms to include Leadway Assurance Company Limited as the lead underwriters while the co-Underwriters are Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company and Anchor Insurance Plc

“Most of these things have remained without insurance for a long time. This one also covers, does not only cover the assets, but also the personnel of the Federal Airports Authority of Nigeria.

“And of course, you know that is in keeping with best labour practices that you don’t have a personnel working in such environment without insurance cover, so that has been done today for all the airports in Nigeria,” he added .