By Sola Alabadan
The National Insurance Commission (NAICOM) has reiterated its commitment to creating an enabling environment that will consistently enhance increased capacity of the Insurance Institutions in Nigeria, both financially and technically.
The Commissioner for Insurance, Olorundare Thomas, gave this assurance during the signing and unveiling of the Guidelines on the submission of Insurance Programme by Operators, Project Promoters, Alliance Partners, and Nigerian Indigenous Companies in the Nigerian Oil and Gas Industry in Yenagoa, Bayelsa State on Wednesday.
He said whilst we note the need to secure domestic supply chains through strong backward domestic integration which has the potency of protecting economies from imported contagion of both a health and economic variety, we are also mindful of the capacity gap of the Supply side.
He reminded the gathering that, prior to the NOGICD Act 2010, the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria.
“In particular Section 65 (7) of the Insurance Act 2003 makes it compulsory for any property located in Nigeria, whether moveable or immovable to be insured by a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria,” he pointed out.
He added that “Section 72 prohibits any person from transacting insurance or reinsurance with foreign insurers/reinsurers except with the written permission of the Commission.”
In similar vein, he said “Sections 49 and 50 of the NOGICD Act specifically relate to Insurance & Reinsurance and Approval for Offshore Insurance respectively. The Act also contains a Schedule with recommended minimum levels of Nigerian Content Level measured by percentage spend.”
He emphasised that the joint Guidelines was 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, as well as to also enable the Board monitor utilisation of in-country insurance capacity.
Thomas therefore implored 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 note that “the sighted relevant laws have demanded our adherence and continued compliance, hence the issuance of this Guidelines.”
