By John Ikani
The Nigerian Content Development and Monitoring Board (NCDMB) has agreed to spearhead the discussions at the upcoming 2023 National Conference, focusing on the establishment of local content synergy between the insurance industry and the oil and gas sector.
Simbi Wabote, the Executive Secretary of NCDMB, has confirmed the board’s participation and has also accepted the role of Guest Speaker at the conference.
The event, organized by STANMEG Communications, will bring together key stakeholders and regulatory agencies from both the oil and gas industry and the insurance sector.
The aim is to explore the benefits and challenges of implementing the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, with particular emphasis on sections 49 and 50, which address insurance in oil and gas activities.
Scheduled to take place on Thursday, July 20, 2023, at Sheraton Hotels in Ikeja, Lagos, the conference will commence at 9 am.
While NCDMB leads the oil and gas industry in examining key issues that may pose challenges to fully leveraging the Act’s immense opportunities, the National Insurance Commission (NAICOM) will provide insights into the possibilities and value creation presented by the Act.
Extensive research conducted by STANMEG Communications revealed a significant gap in the insurance industry’s underwriting capacity in the oil and gas sector.
Recognizing this gap, NCDMB and NAICOM recently signed insurance services guidelines that will compel the oil and gas industry to engage the local insurance sector, thereby retaining expenditure within the country’s economy.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, and the Commissioner for Insurance, Mr. Sunday Thomas, signed the guidelines in Yenagoa on behalf of their respective organizations.
During the ceremony, Engr. Wabote emphasized that sections 49 and 50 of the NOGICD Act require all operators involved in any form of oil and gas activity or project to ensure all insurable risks related to their business with a Nigerian-registered insurance company, through an insurance broker based in Nigeria.
He further highlighted that, according to the Act, if an operator intends to place an insurable risk offshore, written approval must first be sought and obtained from NAICOM, which will assess whether local capacity has been fully utilized.
Engr. Wabote reiterated that the insurance guidelines will bolster the board’s local content drive and ensure a larger portion of expenditure in the Nigerian insurance industry, pertaining to oil and gas activities, remains within the country.
Recognizing the importance of this matter, STANMEG Communications, in collaboration with its partners, has taken the initiative to create a national platform that will convene stakeholders from both sectors.
The aim is to foster discussions, explore the key sections of the Act, identify challenges and opportunities, and establish a stronger synergy to promote local content within the insurance sector.
The conference organizers, along with their partners, have chosen the theme “Building Local Content Synergy Between the Oil and Gas and Insurance Sectors in Nigeria,” with a sub-theme of “Harnessing Insurance Opportunities in the Oil and Gas Industry.”
During the conference, panel discussions will focus on the following topics:
1. Expectations of the Oil and Gas Sector from the Nigerian Insurance Industry.
2. The Role of Insurance Brokers in Unlocking Insurance Opportunities in the Oil and Gas Industry.
3. The Role of Reinsurance in Unlocking Insurance Opportunities in the Nigerian Oil and Gas Sector.
Panelists for these discussions will include representatives from the Nigerian Insurance Association (NIA), the Nigerian Council of Registered Insurance Brokers (NCRIB), the Independent Petroleum Producers Group (IPPG), and other relevant organizations.
Dr. Muda Yusuf, the Chief Executive Officer of the Center for the Promotion of Private Enterprise (CPPE), will serve as the Chairman of the conference.
