FG Approves ₦1.09 Billion Insurance Package for 16 Federal Airports

The Federal Executive Council (FEC) has approved a ₦1.09 billion insurance package to cover critical assets and personnel across all the 16 federal airports in the country.

Minister of Aviation and Aerospace Development, Festus Keyamo, who disclosed this on Monday while briefing newsmen after the FEC meeting presided over by President Bola Tinubu at the State House, Abuja.

He explained that the approval aligns with a directive from the Secretary to the Government of the Federation (SGF), which directed Ministries, Departments, and Agencies (MDAs) to insure critical government assets.

Additionally, the move is essential for Nigeria’s airports to secure International Civil Aviation Organization (ICAO) certification.

According to Keyamo: “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”.

He atressed that many airport assets had remained uninsured for a long time, putting them at risk.

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The newly approved insurance scheme, he said, will protect both infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN).

His words: “This approval ensures that not only are our critical airport assets covered, but also the personnel working in these environments. It is in line with global best labor practices to ensure workers in such sectors have insurance protection”.

The ₦1,097,137,102.48 insurance contract, which includes 7.5% VAT, will be executed over a one-year period, beginning once FAAN completes the premium payment.

Keyamo revealed that following a rigorous selection process, five leading Nigerian insurance firms were chosen to handle the coverage.

Leadway Assurance Company Limited will serve as the lead underwriter, while Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc will act as co-underwriters.

Keyamo reaffirmed that the approval underscores the Tinubu administration’s commitment to improving aviation safety, infrastructure security, and worker welfare in the country.

The federal government has also approved a policy to support local manufacturing of leather goods and footwear, with an initial N500 million set aside to ensure women benefit significantly from the initiative.

Minister of Women Affairs, Hajia Imaan Sulaiman-Ibrahim, told reporters after the FEC meeting that the approval gave the Ministry of Innovation, Science, and Technology the mandate to supply starter packs for leather and footwear manufacturing, a sector where women play a crucial role.

“This is exciting for us because it encourages women’s participation in an industry with high potential for economic growth.

“We pushed for a portion of this intervention to be allocated to women, ensuring they have the necessary tools to scale their businesses and contribute to local production”, Sulaiman-Ibrahim explained

She added that the intervention will not only empower women entrepreneurs but also contribute to Nigeria’s Gross Domestic Product (GDP).

The Minister also highlighted an unprecedented trend of reduction in food prices in the course of the on-going Ramadan.

She attributed this to the administration’s well-thought-out policies, which were praised during both FEC and National Economic Council (NEC) meetings.

“For the first time, even during Ramadan, food prices are going down. This is a testament to the success of our policies, and Mr President was applauded for this achievement,” she noted.

Emphasising President Tinubu’s commitment to the welfare of all Nigerians, especially women, Sulaiman-Ibrahim expressed gratitude for policies that are ensuring affordability and accessibility of food during the fasting period.

“This means that during Ramadan, families can cook and put food on the table, which is very important,” the Minister stressed.

Sulaiman-Ibrahim also revealed that Nigeria is a major exporter of high-quality hide and skin, with luxury fashion house Louis Vuitton sourcing its leather from the country emphasizing the untapped potential of Nigeria’s leather industry, likening its value to that of gold.

“Just like gold, skin and hide is another untapped sector that we should focus on,” she said.

The Minister highlighted that Louis Vuitton, the world’s largest luxury leather goods company, imports leather from Nigeria, a testament to the country’s global relevance in the sector.

“Louis Vuitton, the richest man in France, imports his leather from Nigeria—our skin and hide. He is one of the richest men and owns the biggest leather goods company in the world. I encourage all Nigerians to take advantage of this sector”, she said.