The Federal Government has approved a comprehensive N1.097 billion insurance policy for all airport assets across the country, marking a crucial step in securing critical aviation infrastructure. The announcement was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, following a Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
Keyamo emphasized that 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 key government assets. He highlighted the necessity of the coverage for Nigeria’s airports to achieve certification from the International Civil Aviation Organization (ICAO), a requirement for global operational standards.
“This memo was prompted by the President because we cannot continue to operate our airports and critical assets, which are both valuable and expensive, without insurance coverage,” Keyamo stated. “Many of these assets have remained uninsured for a long time. This approval ensures that both the infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN) are protected, in line with global best practices.”
The N1,097,137,102.48 contract—which includes 7.5% VAT—will cover airport infrastructure and personnel for a one-year period, starting upon the payment of the premium by FAAN. The insurance coverage will be provided by five leading Nigerian insurance firms, carefully selected through a rigorous process.
Leadway Assurance Company Limited was named the lead underwriter for the policy, while Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc will serve as co-underwriters.
Keyamo stressed the importance of the insurance policy, not only in protecting the physical assets of airports but also in ensuring that FAAN personnel are adequately covered. “This is in keeping with global labor standards, which require that personnel working in such environments are adequately insured. Today, we have achieved this for all airports in Nigeria,” he added.
The approval marks a significant milestone in Nigeria’s aviation sector, demonstrating the government’s commitment to operational efficiency, safety, and international compliance. By securing comprehensive insurance coverage, the Federal Government is reinforcing efforts to enhance air travel safety, boost investor confidence, and align the country’s aviation sector with global standards.
This initiative also reflects the administration’s broader policy of protecting national assets and ensuring sustainability in key sectors. As the policy takes effect, stakeholders anticipate that the move will strengthen Nigeria’s aviation industry, improve risk management, and bolster confidence in the nation’s airport infrastructure.
