The Federal Executive Council (FEC) has approved a ₦1.09 billion insurance package to safeguard critical assets and personnel across all 16 federal airports in the country.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced the approval on Monday while briefing journalists after the FEC meeting, presided over by President Bola Tinubu at the State House, Abuja.
He explained that the decision aligns with a directive from the Secretary to the Government of the Federation (SGF), mandating Ministries, Departments, and Agencies (MDAs) to insure critical government assets. The move is also a key requirement for Nigeria’s airports to obtain International Civil Aviation Organization (ICAO) certification.
“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,” Keyamo stated.
He emphasized that many airport assets had remained uninsured for years, exposing them to significant risks.
The newly approved insurance scheme will provide coverage for both infrastructure and personnel of the Federal Airports Authority of Nigeria (FAAN).
“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,” Keyamo added.
The ₦1,097,137,102.48 insurance contract, inclusive of 7.5% VAT, will span one year and commence once FAAN completes the premium payment.
Following a competitive selection process, five leading Nigerian insurance firms were chosen to provide 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 reflects the Tinubu administration’s commitment to enhancing aviation safety, securing infrastructure, and prioritizing worker welfare.
In a separate development, the FEC also approved a policy to support local manufacturing of leather goods and footwear, with an initial ₦500 million set aside to ensure women benefit significantly from the initiative.
Minister of Women Affairs, Hajia Imaan Sulaiman-Ibrahim, disclosed this after the FEC meeting, stating that the Ministry of Innovation, Science, and Technology has been mandated to provide starter packs for leather and footwear manufacturing—an industry 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,” she said.
She noted that the intervention aims to equip women with the necessary tools to scale their businesses and contribute to local production.
“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.
The initiative is expected to empower women entrepreneurs while also contributing to Nigeria’s Gross Domestic Product (GDP).
Sulaiman-Ibrahim also highlighted an unusual trend of declining food prices during the ongoing Ramadan, attributing it to the administration’s strategic policies.
“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.
She emphasized that the government remains committed to ensuring affordability and accessibility of food, especially during the fasting period.
“This means that during Ramadan, families can cook and put food on the table, which is very important,” she stressed.
The Minister further revealed that Nigeria is a major exporter of high-quality leather, with luxury fashion house Louis Vuitton sourcing its materials from the country.
“Just like gold, skin and hide is another untapped sector that we should focus on,” she said.
She underscored Nigeria’s global significance in the leather industry, urging Nigerians to capitalize on its economic potential.
“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 added.
The government’s renewed focus on the leather industry is expected to drive local production, create employment, and position Nigeria as a key player in the global market.
