In accordance with the 2010 Guidelines for Oil and Gas Insurance Business, the National Insurance Commission (NAICOM) has stated its commitment to fostering an environment where insurers can expand their financial capacity to be able to underwrite large risks.
At the Oriental News Summit in Lagos, which had as its theme “Building Local Content Synergy Between the Oil and Gas and the Insurance Sector in Nigeria,” the Commissioner for Insurance, Sunday Thomas, made this statement.
In accordance with Sections 49 and 50 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, it urged the nation’s oil and gas institutions to ensure prompt adherence to the requirements of the guidelines jointly issued by NAICOM and the Nigerian Content Development and Monitoring Board (NCDMB).
The Commissioner emphasized the importance of passing pertinent laws and regulations in order to expand the industry.
The head of NAICOM also mentioned the Commission’s activities and actions that were taken to ensure the successful implementation of the NOGICD Act.
He claims that the Insurance Act of 2003, which was passed prior to the NOGICD ACT, contained extensive provisions for the domestication of insurance services in Nigeria.
“In particular, Section 65(7) makes it compulsory for any property located in Nigeria, whether moveable or immovable, to be insured with a Nigerian registered insurer. Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria.
“The historical relationship between both Industries could be traced to the birth of the latter. Following the issuance of the NOGICD ACT, the insurance Industry in collaboration with the Board brainstormed leading to the issuance of The Guidelines for Oil and Gas Insurance Business issued in 2010, which amongst others, stipulates the roles and responsibilities of insurance firms in ensuring compliance with local content law, with the primary consideration of ensuring actual exhaustion of available in-country insurance capacity,” the NAICOM boss concluded.
