Home Business NAICOM, NCDMB launch insurance guidelines to strengthen Nigeria’s insurance capacity

NAICOM, NCDMB launch insurance guidelines to strengthen Nigeria’s insurance capacity

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As part of efforts to grow the nation’s economy, the National Insurance Commission(NAICOM) and Nigerian Content Development and Monitoring Board(NCDMB) have jointly launched Guidelines that would enhance in-country insurance capacity.

The insurance guidelines affects submission of Insurance Programme by Operators, Project Promoters, Alliance Partners, and Nigerian Indigenous Companies in the Nigerian Oil and Gas Industry.

Speaking at the official signing and presentation of the NCDMB/NAICOM insurance Guidelines, in Bayelsa State, the Commissioner for Insurance, NAICOM, Mr. Thomas Olorundare said the initiative was informed by Federal Government’s drive towards enhancing local content and the need to develop Nigerian industries.

According to Mr. Olorundare, the overall aim of the guideline is the development of indigenous content through increased indigenous participation.

The joint insurance guidelines is also expected to enable the Board monitor utilization of insurance capacity within Nigeria.

“The partnership between NAICOM and the NCDMB which has led to this jointly issued document is a drive towards strengthening our mutual oversight functions.

“It is in alignment with this national interest that we converge this day to append our signatures to the instrument that solicits information evidencing adherence to the Government’s local content determination” he said.

He recalled that “It is important to state that, prior to the NOGICD Act 2010, the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria.

“Following the peculiarity of the Oil and Gas industry, the NOGICD Act was enacted which therefore facilitated the hitherto collaboration between the NCDMB and National Insurance Commission; This amongst others, led to the proactive considerations of the specific provisions of the NOGICD Act relating to the Insurance Industry”.

The NAICOM boss further explained that the “joint Guidelines which is issued with the objectives of enforcing and strengthening compliance with the provisions of the referenced sections of the NOGICD Act and relevant provisions of the Insurance Act with respect to companies carrying on insurance business in the Nigerian oil and gas industry is to also enable the Board monitor utilization of in-country insurance capacity”.

He urged all operators, project promoters, alliance partners and Nigerian indigenous companies engaged in any form of business, operations or contract in the Nigerian oil and gas industry to continue to comply with the guidelines as demanded by relevant laws.

Mr. Olorundare however expressed hope that the initiative will not only bring increased local content but also growth in the nation’s technical capacity, Job creation and employment generation, as well as GDP growth, human capacity development, among others.

He also assured of the Commission’s commitment to creating an “enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically”.

For his part, the Executive Secretary, NCDMB, Engr. Simbi Kesiye Wabote said the Insurance Guidelines would address loopholes that have been identified by the Board in implementing the provisions of the NOGICD Act, particularly sections 49 and 50.

“As we are aware, 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 essence of the above provisions of the NOGICD Act was to ensure the full utilization 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”, Wabote stated.

Mr. Wabote added that the Insurance Guidelines drawn up by both agencies would lead to more value addition and usage of Nigerian insurance firms and insurance brokers registered in Nigeria, acknowledging that the launch of the guidelines was another step by the Board to attaining 70% Nigerian Content by 2027 under the Board’s 10-Year Strategic Roadmap.

The guidelines which the NCDMB boss stressed was a product of persistent and rigorous engagement between the Board and NAICOM in the last twelve months, seeks to 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 within the country

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