NAICOM Backs Confab On Local Content Implementation In Insurance Industry  

The National Insurance Commission (NAICOM) has accepted to lead discussion at the 2023 National Conference on ‘Building Local Content Synergy between the Insurance Industry and Oil and Gas Sector.’

Commissioner for insurance/CEO, NAICOM, Sunday Thomas, who has confirmed the regulators’ participation, has also accepted to be the keynote speaker at the conference being organised by STANMEG Communications, publishers of Oriental News Nigeria Online.

The conference is bringing together key stakeholders and regulatory agencies in both the oil and gas industry and insurance sector to brainstorm on the benefits and challenges while implementing the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, particularly, sections 49 and 50, which deals with insurance of oil and gas activities.

The event, scheduled to hold on Thursday July 20, 2023 in Ikeja Lagos, will see NAICOM leading the insurance industry to examine key issues that might be posing challenges for the industry in exploring huge opportunities provided by the Act. Similarly, the Nigerian Content Development and Monitoring Board (NCDMB) would provide insight to possibilities and value creation which the Act presents.

STANMEG Communications, using rigorous research tools, observed huge gap in the insurance industry underwriting capacity in the oil and gas sector.

Hence, the NCDMB and NAICOM, after identifying this gap recently, signed insurance services guideline which will oblige the oil and gas industry to patronise the local insurance sector, thereby, retaining some insurance premium

in the economy. The executive secretary, NCDMB, Engr. Simbi Kesiye Wabote and the commissioner for Insurance, Mr. Sunday Thomas signed the guidelines recently on behalf of their organisations in Yenagoa, Bayelsa State.

The NCDMB ES, at the ceremony, stated that, the provisions of sections 49 and 50 of the NOGICD Act 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.

He stressed further that the 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, before the issuance of the approval, must ascertain that local capacity has been fully exhausted.

He also reiterated that the insurance guideline will 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.

It is based on this that STANMEG Communications, Publishers of Oriental News Nigeria Online, along with its partners have taken up the initiative to create a national platform that will bring operators in the two sectors together to broaden discussion and conversation around the key sections of the Act, identify challenges, opportunities and build stronger synergy to promote local content in the insurance sector.

According to the conference organisers, partners have designed a theme that centers on the possible outcome of the implementation of the Act as it concerns the insurance industry.

The conference will be chaired by Dr. Muda Yusuf, chief executive officer(CEO), Center For the Promotion of Private Enterprise (CPPE).