The Nigerian Insurance Commission (NAICOM) has revealed its plans to promote specialized insurance products tailored to meet the unique needs of the country’s oil and gas industry. The Commissioner for Insurance and CEO of NAICOM, Mr. Olorundare Sunday Thomas, emphasized the need to facilitate platforms that address the demand-supply gap, support human capacity development, ensure comprehensive risk management, and address regulatory impediments.
As the regulatory authority, NAICOM is committed to creating an enabling environment that enhances the financial and technical capacities of insurance institutions. The collaboration between NAICOM and the Nigerian Content Development and Monitoring Board (NCDMB) aims to promote the development of indigenous capacities and encourage local participation in the oil and gas industry.
The joint Guidelines issued by NAICOM and NCDMB provide guidance to operators in the oil and gas sector, ensuring compliance with the provisions of the NOGICD Act 2010 regarding insurance transactions. By patronizing local insurance firms, the oil and gas operators can contribute to growing local capacity and capabilities, aligning with the strategic roadmap to achieve 70% local content by 2027.
Opinion: The collaboration between NAICOM and NCDMB to enhance local content in the oil and gas industry through specialized insurance products is a positive step towards fostering economic growth and development in Nigeria. By encouraging local participation and increasing regulatory oversight, this initiative can lead to job creation, skill development, and overall progress in the oil and gas sector.