FEC approves N1bn insurance cover for federal airports to meet international standards

The federal executive council (FEC) has approved over N1 billion insurance package for critical assets and personnel across all federal airports in Nigeria. 

Festus Keyamo, minister of aviation and aerospace development, spoke on Monday while briefing State House correspondents after the council meeting presided over by President Bola Tinubu at the presidential villa.

According to Keyamo, the approval 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 added that the measure is a key requirement for Nigeria’s airports to obtain certification from the International Civil Aviation Organisation (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,” the minister said.

“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.

“And 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, so that has been done today for all the airports in Nigeria,”

The insurance contract, valued at N1,097,137,102.48 (inclusive of 7.5 percent VAT), will be executed over a one-year period, commencing upon premium payment by FAAN. 

Keyamo said following a rigorous selection process, five leading Nigerian insurance firms were chosen for the coverage. 

The companies include Leadway Assurance Company Limited as the lead underwriters while the co-underwriters are Cornerstone Insurance Plc,Linkage Assurance Plc, NEM Insurance Company and Anchor Insurance Plc.

Also, FEC approved a policy to support local manufacturing of leather goods and footwear, with women set to benefit significantly from the initiative. 

COUNCIL OKAYS STARTER PACKS FOR LOCAL LEATHER PRODUCTION 

Imaan Sulaiman-Ibrahim, minister of women affairs, said the approval grants 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.,” Sulaiman-Ibrahim Said.

“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.”

According to the minister, the intervention will not only empower women entrepreneurs but also contribute to Nigeria’s gross domestic product (GDP).

Speaking on food prices during the Ramadan season, Sulaiman-Ibrahim highlighted an unprecedented decline in food prices. 

She attributed it to the administration’s well-thought-out policies, which were praised during both the caucus 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 Mister President was applauded for this achievement,” she said.

Also, the minister reaffirmed Tinubu’s commitment to the welfare of all citizens, particularly women. 

Sulaiman-Ibrahim also expressed gratitude to the president for policies that are ensuring affordability and accessibility of food during the fasting period.