NAICOM, NCDMB propose insurance service guidelines to oil & gas stakeholders

The National Insurance Commission (NAICOM) and the Nigerian Content Development and Monitoring Board (NCDMB) have presented insurance services guidelines to key players in the oil and gas industry.

Mr Simbi Wabote, Executive Secretary, NCDMB, and Mr Sunday Thomas, Commissioner for Insurance, NAICOM, delivered the guidelines during the 2022 Nigerian Oil and Gas Conference (NOG) in Abuja on Monday.

According to Wabote, the recommendations will compel the oil and gas industry to use the local insurance sector, thereby keeping money in the economy. It will also close gaps discovered when executing the terms of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

He stated that the provisions of sections 49 and 50 of the NOGICD Act mandate that all operators involved in any kind of industry activity insure all insurable risks associated with their operations with an insurance company via an insurance broker registered in Nigeria.

According to him, the statute requires an operator to seek and acquire written clearance from NAICOM before placing an insurable risk abroad.

He stated that NAICOM must ensure that local capacity has been fully depleted before issuing the approval.

Wabote emphasised that the rules would boost the board’s local content effort and ensure that a higher share of the insurance industry’s spend on oil and gas activities in Nigeria remained in the country.

Thomas, on his part, charged all parties involved in any type of business, operation, or contract in the Nigerian oil and gas industry to maintain compliance with relevant laws and insurance rules.