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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has said there is the urge to intensify the ongoing drive to facilitate platforms that address the demand-supply gap; encourage specialised products that address the needs of the oil and gas Industry.
The Commissioner for Insurance Sunday Thomas, said this today, in a keynote address presented at the Oriental News 2023 Summit in Lagos.
Speaking on the theme; ‘Building Local Content Synergy Between the Oil and Gas and the Insurance Sectors in Nigeria’, Thomas noted that the step adopted would address all potential regulatory impediments; support the development of human capacity and ensure technical capacities of insurance suppliers; ensure adequate risk pricing and comprehensive coverages and risk management.
“As the regulator, we are committed to creating an enabling environment that will consistently enhance increased capacity of the insurance institutions both financially and technically,” he posited.
He also expressed the need for reciprocal expectations from operators in the oil and gas sector, stressing that one of which is timely compliance with the requirements of the Guidelines jointly issued by the NAICOM and NCDMB.
He submitted that it is the ultimate goal of NAICOM to see that, following the mandate to develop indigenous capacities to participate in the oil and gas industry, both regulators would by their collaboration, be able to facilitate, promote adequate assessment of needs of the oil and gas industry and influence the behaviour of insurers, reinsurers and brokers in manners that addresses the needs for national growth and development.
Thomas expressed great pleasure for the privilege to address stakeholders in the oil and gas as well as the insurance sector on the theme, which he said is very crucial to not just the two industries, but the nation as a whole.
He said the drive towards enhancing local content speaks to the long-term plan of the Government burn out of good intention and strategy to grow the economy, develop the Nigerian Industries and her human capital.
“It is worthy to note that prior to the Nigeria Oil and Gas Industry Content Development Act of 2010 (NOGICD ACT), the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria.
“In particular Section 65(7) made it compulsory for any property located in Nigeria whether moveable or immovable to be insured with a Nigerian registered insurer.
“Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria,” he submitted.
The regulator noted that the historical relationship between both Industries could be traced to the birth of the latter, following the issuance of the NOGICD Act, the Insurance Industry in collaboration with the board brainstormed leading to issuance of the guidelines for oil & gas insurance business issued in 2010 which amongst others, stipulates the roles and responsibilities of insurance institutions in ensuring compliance with local content law, with the primary consideration of ensuring actual exhaustion of available In-Country Insurance Capacity.
He submitted that the overall aim being development of indigenous content through increased indigenous participation.
