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By Adewale Sanyaolu
The further deepen its collaboration with the Nigerian Content Development and Monitoring Board(NCDMB), the Nigerian Insurance Commission(NAICOM) has disclosed plans to encourage specialized products that addresses the needs of the oil and gas industry.
Commissioner for Insurance and Chief Executive Officer (CEO) of NAICOM, Mr. Olorundare Sunday Thomas, stated this at the Oriental News Summit on ‘’Building Local Content Synergy Between the Oil and Gas and Insurance Sector in Nigeria’’
He added that there is the urge to intensify the ongoing drive to facilitate platforms that address the demand-supply gap; 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, Thomas said NAICOM is committed to creating an enabling environment that will consistently enhance increased capacity of the Insurance Institutions both financially and technically.
‘‘Beyond our promises and without pre-empting the paper presenters and discussants, I will express the need for reciprocal expectations from operators in the oil and gas sector, one of which is timely compliance with the requirements of the Guidelines jointly issued by the Commission and NCDMB,’’.
He explained further that the ultimate goal, following the mandate to develop indigenous capacities to participate in the oil and Gas Industry, is for both regulators to collaborate to 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.
He added that the synergy between both industries was renewed when both agencies identified the need for a veritable platform for inter-agency collaboration in order to give effect to the requirements of Sections 49 and 50 of the NOGICD Act 2010 by providing guidance to operators in the oil and gas necessary for satisfying the provisions of the law in relation to insurance transactions.
According to the NAICOM boss, the journey for the renewed collaboration transited to the signing and unveiling of the Guidelines on submission of Insurance Programme by operators, project promoters, alliance partners, and Nigerian indigenous companies in the Nigerian oil and gas Industry.
Other than the circulation of the Guidelines, there was an official unveiling at the 21st NOG Energy Conference and Exhibition in Abuja.The Jointly issued Guidelines portend to satisfy the intent and provision of the laws: thereby enabling the NCDMB monitor utilization of in-country insurance capacity which is a road to increased retention, growth in in-country technical capacity, Job creation, increased penetration and GDP growth, human capacity development, and many others.
It is also projected that the Guidelines will entrench effective regulatory oversight. This is to be the dividend of an active approach to joint regulatory framework for driving local content in Nigeria,’’.
Also speaking, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, urged the oil and gas operators to imbibe the practice of local content in their system by patronising local insurance firms.
Wabote, who was represented by Director, Corporate Services, NCDMB, Patrick Oba, confirmed that the performance of the insurance sector, particularly in relation to oil and gas businesses is low, urging the insurance operators to bridge the capacity and capability gap.
” We need to grow local capacity and capabilities. We have created a strategic roadmap from 2017 – 2027 to grow local content to 70 per cent and we are working aggressively to meet that target,”.
