FG approves 1.09 billion Naira for FAAN assets insurance

women to also benefit

The Federal Executive Council on Monday approved ₦1.09 billion for insuring critical assets and personnel across all Nigeria’s 16 federal airports.

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

Keyamo explained that the approval is in line 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.

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

According to Keyamo, the Federal Airports Authority of Nigeria (FAAN) cannot continue to run the Nation’s airports and critical assets, without insurance cover.

This memo he said, was prompted by Mr. President.

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

He added that this approval 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.

He said 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 emphasizes the commitment of the administration of President Bola Ahmed Tinubu, 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, gave this information to reporters after the FEC meeting on Monday.

Hajia Imaan said 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.

She said this moved will encourage women’s participation in an industry with high potential for economic growth.

She explained that the Ministry 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.

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.

Emphasising President Tinubu’s commitment to the welfare of all Nigerians, especially women, Hajia Imaan 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 said.

She 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, which emphasizes the untapped potential of Nigeria’s leather industry.

She likened the value of the leather industry to that of gold.

She concluded by encouraging all Nigerians to take advantage of this sector.

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