For years, Nigeria’s aviation infrastructure remained uninsured, exposing critical airport assets and personnel to immense risks. However, a bold step by the Federal Government has changed the narrative. On March 4, 2025, Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, announced that the government had secured a N1.097 billion insurance policy covering all federal airports.
This approval, granted by the Federal Executive Council (FEC) under President Bola Ahmed Tinubu’s leadership, aligns with a directive from the Secretary to the Government of the Federation (SGF), mandating ministries, departments, and agencies (MDAs) to insure critical national assets. More importantly, it fulfills a key requirement for Nigeria’s airports to obtain certification from the International Civil Aviation Organization (ICAO).
At the core of this initiative is a consortium of five leading Nigerian insurance firms, with Leadway Assurance Company Limited serving as the lead underwriter. The co-underwriters include Cornerstone Insurance Plc, Linkage Assurance Plc, NEM Insurance Company, and Anchor Insurance Plc, selected after a rigorous screening process to ensure comprehensive risk coverage.
Reflecting on past challenges, Keyamo acknowledged that many of these assets had remained uninsured for an extended period—a scenario that posed serious financial and operational risks. “We cannot continue to run our airports and critical assets, as precious and expensive as they are, without insurance cover,” he emphasized.
Beyond infrastructure protection, the policy also provides coverage for the personnel of the Federal Airports Authority of Nigeria (FAAN), in line with global labor best practices. This ensures that aviation workers are protected against occupational hazards, reinforcing safety standards across all Nigerian airports.
The N1.097 billion insurance contract, which includes a 7.5% VAT component, will be implemented over a one-year period, commencing upon premium payment by FAAN. With this milestone, the Nigerian government has demonstrated a renewed commitment to risk management, financial prudence, and international aviation compliance.
This turning point in Nigeria’s aviation sector is expected to enhance investor confidence, strengthen operational resilience, and safeguard national aviation assets for the long term.
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