Federal Government Approves ₦1.09bn Insurance Coverage for Nigerian Airports
The federal government has approved an insurance package worth ₦1.09 billion to cover critical assets and personnel at all federal airports in Nigeria.
Minister of Aviation and Aerospace Development, Festus Keyamo, made the announcement on Monday after the Federal Executive Council (FEC) meeting, which was presided over by President Bola Tinubu at the Presidential Villa.
Keyamo explained that the approval follows a directive from the Secretary to the Government of the Federation (SGF), requiring Ministries, Departments, and Agencies (MDAs) to insure critical government assets. Additionally, the insurance coverage is a necessary step for Nigeria’s airports to meet certification requirements set by the International Civil Aviation Organisation (ICAO).
“This decision comes at the request of Mr. President because we cannot continue to operate our airports and other critical assets, which are both valuable and expensive, without proper insurance,” Keyamo said.
He further noted that many of these assets had remained uninsured for a long time, and the new insurance approval ensures that both the infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN) are covered, aligning with international labor standards.
The ₦1,097,137,102.48 contract (including 7.5% VAT) will be executed over one year, starting once FAAN makes the premium payment.
Following a competitive selection process, five prominent Nigerian insurance firms were chosen to provide 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 are the co-underwriters.
Keyamo emphasized that the coverage not only protects the physical assets but also ensures that the personnel working at Nigeria’s airports are insured in line with best labor practices.
“This insurance is vital as it covers both the assets and the personnel of FAAN, which is in line with global labor standards,” he added.
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