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No Insurance Policy On Non-certified Electrical Installations, NEMSA, NAICOM Agree

by Nse Anthony - Uko
7 months ago
in Business
NAICOM
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The Nigerian Electricity Management Services Agency (NEMSA) and the National Insurance Commission (NAICOM) have partnered to enhance electrical safety and insurance compliance in the country.

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The two agencies signed a Memorandum of Understanding (MoU) to ensure that as a precondition all electrical installations in residential, commercial, industrial premises, hazardous locations, industries and factories are duly certified by NEMSA, before Insurance Policy is processed by all Insurance Companies.

The implication of the agreement, signed in Abuja on Friday, is that no insurance policy will cover electrical installations not certified by NEMSA.

This partnership, the agencies noted, aligns with the federal government’s commitment to strengthening the reliability and safety of Nigeria’s electricity sector, by ensuring strict adherence to safety standards in residential, commercial, and industrial premises across Nigeria.

Recall that NEMSA is responsible for enforcing technical standards and certifying electrical installations to prevent accidents and ensure reliable electricity supply.

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By collaborating with NAICOM, both agencies seek to create a framework where only compliant installations are insured, thereby reducing risks associated with substandard work.

Speaking at the signing ceremony, the managing director/chief executive officer of NEMSA, Aliyu Tukur Tahir, emphasised the importance of this collaboration in mitigating risks associated with electrical accidents and infrastructure failures.

“This partnership with NAICOM is a significant step towards ensuring that all electricity consumers, operators, and investors adhere to the highest safety and risk management standards. By integrating insurance compliance into electrical safety enforcement, we are safeguarding lives, investments, and the overall integrity of the power sector,” he stated.

Tukur, who is also the chief electrical inspector of the federation, said that going forward ‘’It will also be a requirement by NEMSA that all Facility Applicants of its statutory inspection, testing and certification, should ensure that their Facilities are insured with Insurance Companies, for safety and mitigation of risk’’

On his part, the commissioner for insurance and chief executive officer of NAICOM, Olusegun Ayo Omosehin, reiterated NAICOM’s commitment to ensuring that all power sector players embrace insurance as a critical risk management tool.

“Insurance plays a crucial role in cushioning the effects of electrical hazards and infrastructure-related incidents. Through this MoU, we will work closely with NEMSA to enforce compliance with relevant insurance policies, ensuring that the power sector operates with adequate risk mitigation mechanisms in place,” he said.

The collaboration will involve joint awareness campaigns, regulatory enforcement, and information-sharing initiatives to promote electrical safety and insurance adoption across the power sector.

This strategic partnership marks a milestone in the drive to enhance safety, reliability, and sustainability within Nigeria’s electricity industry and the country at large.

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