By John Ikani
The Nigerian Content Development and Monitoring Board (NCDMB) and the National Insurance Commission (NAICOM) have presented insurance services guidelines to key players in the oil and gas industry.
The guidelines were presented by Executive Secretary of the NCDMB, Engr. Simbi Wabote and the Commissioner for Insurance, NAICOM, Mr Sunday Thomas on Monday at the 2022 Nigerian Oil and Gas Conference (NOG) in Abuja.
Engr. Wabote who noted that the guidelines will compel the oil and gas industry to use the local insurance sector, thereby keeping money in the economy, added that the measure 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 act provides that where an operator seeks to place an insurable risk offshore, a written approval of NAICOM must first be sought and obtained.
The local content boss added that NAICOM before the issuance of the approval must ascertain that local capacity had been fully exhausted.
He reiterated that the guidelines would 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 was retained in-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.