The Federal Government of Nigeria has secured a comprehensive insurance policy for all airport assets across the country, valued at N1.097 billion, according to Minister of Aviation and Aerospace Development, Festus Keyamo, SAN.
Keyamo revealed the decision following the Federal Executive Council (FEC) meeting, which was presided over by President Bola Tinubu at the Presidential Villa in Abuja.
The new insurance policy covers both infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN), aligning with global best practices for labor and safety.
“This memo was prompted by the President because we cannot continue to run our airports and our critical assets, as precious and expensive as they are, without insurance cover,” Keyamo stated.
“Most of these assets have remained uninsured for a long time. This approval ensures both infrastructure and personnel are covered, in line with global best practices.”
The insurance contract, which includes 7.5% VAT, will run for one year, starting upon premium payment by FAAN. A rigorous selection process led to the involvement of five top Nigerian insurance companies: Leadway Assurance Company Limited, the lead underwriter, and co-underwriters Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc.
Keyamo further emphasized, “Of course, you know that is in keeping with best labor practices that you don’t have a personnel working in such an environment without insurance cover. That has been done today for all the airports in Nigeria.”
The insurance policy aims to ensure that Nigeria’s airports and their critical infrastructure meet the standards required for certification by the International Civil Aviation Organization (ICAO).