The Federal Executive Council has approved a ₦1.09 billion insurance package for critical assets and personnel across all federal airports in Nigeria.
The Minister of Aviation and Aerospace Development, Festus Keyamo, revealed this stance to Journalists on Monday after the Federal Executive Council (FEC) presided over by President Bola Tinubu at the Presidential Villa.
Keyamo stated that the approval is in tandem 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.
Furthermore, he said the measure is a key requirement for Nigeria’s airports to obtain certification from the International Civil Aviation Organization (ICAO).
“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, he 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:Cornerstone Insurance Plc,Linkage Assurance Plc,NEM Insurance Company and Anchor Insurance Plc
He said “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, does not only cover the assets, but also the personnel, also of the federal Airports authority of Nigeria.
“And of course, you know that is in keeping with best labor practices that you don’t have a personnel working in such Environment without insurance cover, so that has been done today for all the airports in Nigeria,” he added .
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