The federal government has announced the approval of a comprehensive insurance policy for all airport assets across the country at a cost of N1.097 billion. This decision was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, during a briefing with journalists after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
Keyamo explained that the move 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. He emphasized that the insurance coverage is a crucial requirement for Nigeria’s airports to achieve certification from the International Civil Aviation Organization (ICAO).
“This memo was prompted by the President because we cannot continue to operate our airports and critical assets, which are both valuable and expensive, without insurance coverage,” Keyamo stated. “Many of these assets have remained uninsured for a long time. This approval ensures that both the infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN) are protected, in line with global best practices.”
The insurance contract, valued at N1,097,137,102.48 (inclusive of 7.5% VAT), will be implemented over a one-year period, starting upon the payment of the premium by FAAN. Keyamo revealed that five leading Nigerian insurance firms were selected through a rigorous process to provide the coverage.
The lead underwriter for the policy is Leadway Assurance Company Limited, while the co-underwriters include Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc.
Keyamo further highlighted the importance of the policy, noting that it not only safeguards airport infrastructure but also provides insurance coverage for FAAN personnel. “This is in keeping with global labor standards, which require that personnel working in such environments are adequately insured. Today, we have achieved this for all airports in Nigeria,” he said.
The approval marks a significant step in ensuring the safety and sustainability of Nigeria’s aviation sector, aligning with international standards and protecting both assets and workers. This development underscores the government’s commitment to enhancing the operational efficiency and security of the nation’s airports.
