Thomas Unveils NCDMB/NAICOM Insurance Guidelines, Yenagoa

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The executive secretary of NCDMB in his welcome address of the Commissioner for the National Insurance Commission (NAICOM) and his team to the Nigerian Content Tower, Yenagoa, Bayelsa State for the official launch of the NCDMB/NAICOM Insurance Guidelines.
Engr. Simbi Kesiye Wabote said Today’s event marks yet another giant stride in our quest to actualize the Board’s mandate under the NOGICD Act, 2010, which is primarily to drive and promote Nigerian Content in the Nigerian Oil and Gas industry.
He pointed out that this event is the culmination of consistent, persistent and rigorous engagement between the Board and NAICOM in the last twelve months. This engagement, and the outcome, between the two agencies speak to the advantage derived from collaboration, he added.
“The success of our engagement, earmarked by this launch of the Insurance Guidelines, further attests to my belief that the local content enforcement and implementation is not a sprint but a marathon.
He said this Insurance Guidelines addresses loopholes that have been identified by the Board in implementing the provisions of the NOGICD Act, particularly sections 49 and 50.
As we are aware, Engr Wabote stated that the combined provisions of sections 49 and 50 require all operators engaged in any form of activity or project in the Oil and Gas industry to ‘’insure all insurable risks related to its oil and gas business…with an insurance company, through an insurance broker registered in Nigeria.’’
The NOGICD Act provides that where an operator seeks to place an insurable risk offshore, a written approval of NAICOM must first be sought and obtained and that NAICOM, prior to the issuance of the approval, must first determine that ‘’…local capacity has been fully exhausted.’’
The essence of the above provisions of the NOGICD Act was to ensure the full utilization of available in-country capacity in the Insurance sector before seeking offshore insurance services, he notes that this is expected to support retention of capital in-country and build capacity of Nigerian insurance companies in the oil and gas industry.
“It is believed that the implementation of this Insurance Guidelines will further 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 is retained in-country.
In his words: I am therefore excited that this Insurance Guidelines, drawn up by the Board and NAICOM, will lead to more value addition and usage of Nigerian insurance firms and insurance brokers registered in Nigeria.
“I am glad to announce that today’s launch of the Insurance Guidelines marks the first step in the implementation  of the Guidelines. This is following the series of meetings over the past one week between representatives of the Board and NAICOM to draft the framework implementation plan, which has now been concluded,  Wabote stressed.
“Let me conclude by reminding us that this event is another step by the Board to attaining 70% Nigerian Content by 2027 under the Board’s 10-Year Strategic Roadmap.
Finally, Engr. Simbi Kesiye Wabote said  the Board is delighted to collaborate further with NAICOM to ensure the successful implementation of the Insurance Guidelines and every other activity that will lead to the attainment of the objectives of the NOGICD Act, 2010.
“We will further dissipate information about the new Insurance Guidelines during the Nigerian Content Seminar session at the 2022 Nigerian Oil and Gas Event scheduled for next month, 4th to 7th July 2022 in Abuja. I look forward to seeing you at the event as we deepen the discussions on the requirements and benefits of the Insurance Guideline to industry practitioners, he added.

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