NAICOM Endorses Insurers Unavoidable Participation On Local Content In Oil And Gas Risks

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 scheduled for July 20, 2023 at Sheraton Hotels, Ikeja.

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

The conference is bringing 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.

While the NAICOM is leading the insurance industry to examine key issues that might be posing challenges for the industry in exploring huge opportunities provided by the Act, 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. 

The NCDMB and the NAICOM, equally after identifying this gap recently signed insurance services guideline which will oblige the oil and gas industry to patronize the local insurance sector, thereby retain spend 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.

The Executive Secretary of the NCDMB, 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 has 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 organizers, 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 Theme is: BUILDING LOCAL CONTENT SYNERGY BETWEEN THE OIL AND GAS  AND THE  INSURANCE SECTORS IN NIGERIA” with sub theme HARNESSING INSURANCE OPPORTUNITIES IN THE OIL AND GAS INDUSTRY.

During the conference there will be Panel Discussions on the following 

1. EXPECTATIONS OF OIL AND GAS SECTOR FROM THE NIGERIAN INSURANCE INDUSTRY. 

2. ROLE OF INSURANCE BROKERS IN UNLOCKING INSURANCE OPPORTUNITIES IN THE OIL AND GAS INDUSTRY. 

3. ROLE OF REINSURANCE IN UNLOCKING INSURANCE OPPORTUNITIES IN THE OIL AND GAS SECTOR FOR NIGERIAN COMPANIES.

There will be panel discussion to on the subject matter which will include the Nigerian Insurance Association , NIA, Nigerian Council of Registered Insurance Brokers, NCRIB, Independent Petroleum Producers Group, IPPG, among others

The conference will be chaired by Dr. Muda Yusuf, Chief Executive Officer, CEO Center For The Promotion Of Private Enterprise, CPPE