A strategy has been disclosed by the Nigerian Content Development and Monitoring Board (NCDMB) to increase Nigerian insurance’s share of the oil and gas industry to 70%.
During a familiarisation visit to the National Insurance Commission (NAICOM) main office in Abuja, Felix Omatsola Ogbe, the newly appointed Executive Secretary of the NCDMB, provided the assurance.
According to the NCDMB head, the goal of the visit was to establish a rapport with the heads of the organizations that are represented on the Governing Council of the organization and to look into potential areas of cooperation.
In order to meet the administration’s economic goals, Ogbe stated that the NCDMB has reaffirmed its commitment to strengthening its relationships with important federal agencies. She added that collaboration and teamwork were essential to achieving any admirable goal.
In order to encourage Nigerian oil and gas businesses to support regional insurance companies and maintain economic expenditure on risk management, he said that NCDMB and NAICOM will collaborate closely to examine and implement the insurance rules that both organizations jointly released in June 2022.
Sunday Thomas, the Commissioner for Insurance, congratulated the Executive Secretary on his appointment and pointed out that he would be expanding upon the strong base that his forebears had established.
Thomas hailed the board’s founders for their vision in establishing such a significant organization and defined NCDMB as a strong organization. He also praised the past NCDMB executive secretaries for their accomplishments and creative projects throughout their tenure.
The commissioner emphasized the value of insurance as the lifeblood of commercial operations. He voiced worry about the lack of implementation of the insurance services regulations, which were signed by the NCDMB and the commission.
Recall that the federal government established a target of 70% local content for the underwriting of risks related to oil and gas. This implies that insurance companies in Nigeria will cover 70% of the risks related to the oil and gas industry, including prospecting, exploration, drilling, construction, shipping, distribution, marketing, and transportation. He lamented the fact that, as a result of the local insurance industry’s limited capabilities, energy risks are still heavily insured outside.
