The National Insurance Commission (NAICOM) and Nigerian Content Development and Monitoring Board (NCDMB) have unveiled Guidelines that would improve insurance capacity in the oil and gas sector. The insurance guidelines affect 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. The joint insurance guidelines is expected to enable the Board monitor utilization of insurance capacity within Nigeria.
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. Olorundare 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.’’