The Federal Executive Council (FEC) on Wednesday approved N9.2 billion as premium for insurance companies that will manage the group life insurance for Federal civil servants.
This was among the N35,013,831,385 worth of contract approvals the council granted during its weekly virtual FEC meeting which was presided over by President Muhammadu Buhari at the Presidential Villa in Abuja.
Information and Culture Minister Lai Mohammed, who announced this to State House Correspondents at the post-FEC briefing, said the memorandum for the group life insurance was presented to the Council by the Head of Civil Service of the Federation, Dr. Folasade Yemi-Esan.
He said: “On behalf of the Head of Civil Service of the Federation, I will like to report that Council today approved the award of contract for the appointment of insurance companies for group life assurance for Federal Government employees, public servants para-military and the intelligence community for the year 2021-2022 in the sum of N9,248.995,907 and this premium is for a period of 12 months.
“This is part of the government’s welfare programme for our public employees so that in case of death, they are assured that there would be compensation.”
FEC also approved the establishment of oxygen production plants in all the 36 states of the federation and the Federal Capital Territory (FCT) at the cost of N5.6 billion.
Mohammed, who spoke on the memorandum on behalf of Health Minister Dr. Osagie Ehanire, explained that the approval was meant to cushion the effect of COVID-19 pandemic, which has made oxygen a critical commodity.
He said the council also approved N18.1 billion for the Ministry of Industry, Trade and Investment for the development of infrastructure; the Kano and Calabar Free Trade Zones; the Textile and Garment Park in Lagos and the Special Economic Zone in Lekki, Lagos State.
Mohammed stressed that the approval was critical to the infrastructure development plan of the country.
The minister added that the council also approved N1.1 billion for the procurement of aviation security uniforms and accessories for use in various airports across the country.
He said: “Minister of Aviation got an approval for the award of contract for direct procurement for the design, manufacture and supply of aviation security uniforms and accessories. The sum total is N1,127,945. The unique thing about uniforms for the aviation industry is that it has some International Civil Aviation Organisation (ICAO) standards that would be followed.”