The federal government has secured an insurance policy for all the airport’s assets in the country at the cost of N1.097 billion. This was disclosed yesterday, March 4, 2025, by Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, while briefing journalists after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Keyamo stated that the approval was in tandem with a directive from the Secretary to the Government of the Federation (SGF), mandating ministries, departments, and agencies, MDAs, to insure critical government assets.
According to him, the measure was a key requirement for Nigeria’s airports to obtain certification from the International Civil Aviation Organization, ICAO.
He said “this memo was prompted by the 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 labour practices,’’ Keyamo said.
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.
He explained that after a rigorous selection process, five leading Nigerian insurance firms were chosen for the coverage.
He listed them to include Leadway Assurance Company Limited which serves as the lead underwriters, while the four co-underwriters are Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company and Anchor Insurance Plc.
He said: “So, 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.
“Most of these things have remained without insurance for a long time. This one does not only cover the assets but also the personnel of the Federal Airports Authority of Nigeria, FAAN.
“Of course, you know that is in keeping with best labour practices that you don’t have a personnel working in such environment without insurance cover. That has been done today for all the airports in Nigeria.’’
