FG secures N1.09b insurance for airports’ assets – Keyamo

The Federal Executive Council on Monday approved a ₦1.09 billion insurance package to protect staff and assets in all Federal Airports across the country.

Minister of Aviation and Aerospace Development, Festus Keyamo, made the disclosure while addressing newsmen after the Federal Executive Council (FEC) meeting, which was presided over by President Bola Tinubu at the Presidential Villa, Abuja.

Keyamo said the approval is in line with a directive from the Secretary to the Government of the Federation mandating Ministries, Departments, and Agencies (MDAs) to insure critical government assets.

He explained that the measure is a key requirement for Nigeria’s airports to obtain certification from the
International Civil Aviation Organization (ICAO).

He 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.

“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.

Following a rigorous selection process, the Minister said five leading Nigerian insurance firms were chosen for the coverage.

They are 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.

“So this memo was prompted by Mr. President because we cannot continue to run our airports and our critical assets, as precious and expensive as they are, without insurance cover.

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

“Of course, you know that it is in keeping with best labor practices that you don’t have personnel working in such an environment without insurance cover. So that has been done today for all the airports in Nigeria,” he added.