BY NKECHI NAECHE-ESEZOBOR-The National Insurance Commission (NAICOM) in conjunction with Nigerian Content Development and Monitoring Board (NCDMB) on Wednesday launched guidelines on submission of insurance programme by operators, project promoters, alliance partners and indigenous companies in the Oil and Gas industry.
Speaking at the launch, the Executive Secretary of NCDMB Engr. Simbi Wabote, said the Insurance Guidelines addresses loopholes that have been identified by the Board in implementing the provisions of the NOGICD Act, particularly sections 49 and 50.
The combined provisions of sections 49 and 50 require all operators engaged in any form of activity or project in the Oil and Gas industry to “insure all insurable risks related to its oil and gas business… with an insurance company, through an insurance broker registered in Nigeria.”
The NOGICD Act provides that where an operator seeks to place an insurable risk offshore, a written approval of NAICOM must first be sought and obtained and that NAICOM, prior to the issuance of the approval, must first determine that “…local capacity has been fully exhausted.”
“The essence of the above provisions of the NOGICD Act was to ensure the full utilisation of available in-country capacity in the insurance sector before seeking offshore insurance services. This is expected to support retention of capital in-country and build capacity of Nigerian insurance companies in the oil and gas industry.”
“It is believed that the implementation of this Insurance Guidelines will further strengthen the Board’s local content drive and ensure that a greater portion of the spend in the insurance industry as it relates to oil and gas activities in Nigeria is retained in-country.”
He emphasised that the Insurance Guidelines, drawn up by the two government agencies, will lead to more value addition and usage of Nigerian insurance firms and insurance brokers registered in Nigeria.
He also pointed out that the launch of the insurance guidelines marks the first step in the implementation of the Guidelines, adding that the representatives of both government agencies have finished drafting the framework implementation plan.
He noted that the guidelines is another step by the Board of NCDMB to attaining 70 percent Nigerian Content by 2027 under the Board’s 10-Year Strategic Roadmap.
While adding that the board of NCDMB is delighted to collaborate further with NAICOM to ensure the successful implementation of the Insurance Guidelines and every other activity that will lead to the attainment of the objectives of the NOGICD Act, 2010.
“We will further dissipate information about the new Insurance Guidelines during the Nigerian Content Seminar session at the 2022 Nigerian Oil and Gas Event scheduled for next month, 4th to 7th July 2022 in Abuja.
Representing the industry at the event were Commissioner for Insurance, Sunday Thomas, the Deputy Commissioner for Insurance, Technical, Alh. Sabiu Bello Abubakar, NAICOM Director, Policy and Regulations, Mr. Leonard Akah, the Chairman, Nigeria Insurers Association, Mr. Ganiyu Musa and Mr. Tunde Oguntade, who repesented the President of Nigerian Council of Registered Insurance Brokers.
