Critical assets and personnel across all federal airports are to get insurance cover following yesterday’s approval of a N1.09 billion package by the Federal Executive Council (FEC).
Aviation and Aerospace Development Minister Festus Keyamo dropped the hint after the FEC meeting at the State House in Abuja.
Keyamo told State House reporters that 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 move is essential for Nigeria’s airports to secure International Civil Aviation Organisation (ICAO) certification.
Keyamo said: “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.”
The minister noted that many airport assets had remained uninsured for a long time, putting them at risk.
The approved insurance scheme, he noted, will protect infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN).
“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,”, he stated.
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The N1,097,137,102.48 insurance contract, which includes 7.5% VAT, will be executed over a year, beginning from the completion of the premium payment by FAAN
Keyamo revealed that following a rigorous selection process, five leading Nigerian insurance firms were chosen to handle the coverage.
He named Leadway Assurance Company Limited as the lead underwriter. Others co-underwriters are: Cornerstone Insurance Plc; Linkage Assurance Plc; NEM Insurance Company and Anchor Insurance Plc.
The minister reaffirmed that the approval underscores the Tinubu administration’s commitment to improving aviation safety, infrastructure security and workers welfare.