The Federal Executive Council (FEC) has approved a N1.09 billion insurance package to protect staff and critical assets across all federal airports in Nigeria. The decision, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, follows a directive from the Secretary to the Government of the Federation mandating ministries, departments, and agencies to insure government assets.
Keyamo’s Explanation
Speaking after the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, Keyamo emphasized the importance of the insurance package in meeting international standards and safeguarding Nigeria’s aviation infrastructure.
“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. Most of these assets have remained uninsured for a long time,” Keyamo stated.
He added that the approval ensures both the infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN) are covered, aligning with global best practices and the requirements of the International Civil Aviation Organization (ICAO) for airport certification.
Insurance Contract Details
The insurance contract, valued at N1,097,137,102.48 (inclusive of 7.5% VAT), will be executed over a one-year period, commencing upon premium payment by FAAN.
Selected Insurance Firms
Following a rigorous selection process, five leading Nigerian insurance firms were chosen to provide the coverage:
Lead Underwriter: Leadway Assurance Company Limited
Co-Underwriters: Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc
The insurance package marks a significant step toward enhancing the safety and sustainability of Nigeria’s aviation sector. It also underscores the government’s commitment to protecting critical national assets and ensuring compliance with international standards.