ICRC, NAICOM collaborate to enforce insurance cover for FG’s PPP assets

. . . To issue compliance modalities in January 2025

The Infrastructure Concession Regulatory Commission (ICRC) has entered into partnership with the National Insurance Commission (NAICOM) to mandate concessionaires of government assets to procure insurance covers for the assets under Public Private Partnership (PPP) arrangements.

The two commissions reached the agreement when the Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin led a management delegation on a courtesy visit to the Director General of the ICRC, Jobson Oseodion Ewalefoh on Monday in Abuja.

In his remark, the DG ICRC reiterated his earlier statement at a visit to the Minister of Interior, where he first noted that all strategic assets of the Federal Government must be insured, commending NAICOM for following it up with a visit.

He further said that insurance of PPP assets was not optional but mandatory as it was stipulated in Section 7(2)a of the ICRC Act (2005) which states: “….the project proponent or contractor shall undertake appropriate insurance policy on the concession with an insurance company approved by the National Insurance Commission.”

Ewalefoh said: “So, we have to ensure that the concessionaires obtain the appropriate insurance policy that they are required by law to undertake in line with the value of the asset.

“So, working in collaboration with NAICOM, we would be able to determine if the right insurance policy has been obtained.”

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He further informed the meeting that the ICRC was already requesting concessionaires of new PPP projects to provide proof of insurance cover for the projects they are about to undertake.

He also said that the ICRC would now work out modalities in conjunction with NAICOM to ensure compliance by concessionaires of ongoing projects that were yet to procure insurance for the project.

He added that the modalities will be issued by January 2025 to all concessionaires.

On his part, Omosehin, CEO of NAICOM, pointed out that the Insurance Commission was charged with regulating and supervising the insurance sector in Nigeria, while also advising government and its agencies on insurance matters.

“We are responsible for ensuring that critical National assets have adequate cover. One key thing that made this meeting possible was the position of the DG on insurance of PPP assets when he met with the Interior Minister. This was the origin of our desire to meet with ICRC.

“We are here to forge that partnership that will enable that provision in the law to be enforced. I hope NAICOM and ICRC will use this opportunity to forge a quick alliance in ensuring that the partnership works in ensuring that the compliance part of the law works,” he said.

The NAICOM chief executive officer commended the DG of ICRC for his position on enforcing insurance, pointing out that the power to enforce insurance across all sectors is not contained in the NAICOM Act but only in the Act of other agencies like ICRC.

He added that NAICOM was willing to offer effective trainings to ICRC officers who will be part of the technical committee.

A high point of the meeting was the appointment, by both Chief Executives, of the leadership of a joint technical committee that will work out the modalities for optimising insurance covers for all government PPP assets.