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Business News of Monday, 13 June 2022


FG targets 70% local content in insurance, unveils guidelines

Insurance file photo Insurance file photo

The Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote, has said that the agency and the National Insurance Commission’s guidelines will help to achieve local content in the sector by 2027.

A statement from NAICOM said that Wabote spoke during the official launch of the NCDMB/NAICOM insurance guidelines.

“This event is another step by the Board to attain 70 per cent Nigerian content by 2027 under the board’s 10-year strategic roadmap,” he said.

Explaining the guidelines, he said, “I am delighted to announce that these insurance guidelines address 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, 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 the National Insurance Commission 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."

He said the essence of the above provisions of the NOGICD Act was to ensure the full utilisation of available in-country capacity in the insurance sector before seeking offshore insurance services.

This was expected to support retention of capital in-country and build the capacity of Nigerian insurance companies in the oil and gas industry, he said.

The implementation of the insurance guidelines, he noted, would further strengthen the board’s local content drive and ensure that a greater portion of the spending in the insurance industry as it related to oil and gas activities in Nigeria was retained in-country.

He said the insurance guidelines, drawn up by the board and NAICOM, would lead to more value-addition and usage of Nigerian insurance firms and insurance brokers registered in Nigeria.

Wabote said the board was delighted to collaborate further with NAICOM to ensure the successful implementation of the insurance guidelines and every other activity that would lead to the attainment of the objectives of the NOGICD Act, 2010.