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NCDMB backs dialogue on local content implementation in insurance industry

NCDMB Backs dialogue On Local Content Implementation In Insurance Industry

The Nigerian Content Development and Monitoring Board, NCDMB, will lead discussion at the 2023 National Conference on Building Local Content Synergy between the Insurance Industry and Oil and Gas Sector.

The conference theme is titled “ Building local content synergy between the oil and gas and the insurance sectors in Nigeria.” And sun theme “Harnessing insurance opportunities in the oil and gas industry.”

The event is scheduled to hold on Thursday July 20 2023, 9am at Sheraton Hotels, Ikeja Lagos,

The conference is to bring key stakeholders and regulatory agencies in both the oil and gas industry and insurance sector together to brainstorm on the benefits and challenges while implementing the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, particularly sections 49 and 50, which deals with insurance of oil and gas activities.

Simbi Kesiye Wabote, Executive Secretary of the Board, who has confirmed NCDMB’s participation has also accepted to be the Guest speaker at the conference being organised by STANMEG Communications, publishers of Oriental News Nigeria Online.

While the NCDMB is leading the oil and gas industry to examine key issues that might be posing challenges for the industry in exploring huge opportunities provided by the Act, the National Insurance Commission (NAICOM), would provide insight to possibilities and value creation which the Act presents.

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STANMEG Communications using rigorous research tools observed a huge gap in the insurance industry underwriting capacity in the oil and gas sector.

The NCDMB and the NAICOM, equally after identifying this gap, recently signed an insurance services guideline which will oblige the oil and gas industry to patronise the local insurance sector, thereby retaining spending in the economy.

Wabote and Sunday Thomas, Commissioner for Insurance, signed the guidelines recently on behalf of their organisations in Yenagoa.

Wabote at the ceremony said, “that the provisions of sections 49 and 50 of the NOGICD Act 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.

That the 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 before the issuance of the approval must ascertain that local capacity has been fully exhausted.”

The Executive Secretary also reiterated that the Insurance guideline will 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.

It is based on this that STANMEG Communications, Publishers of Oriental News Nigeria Online, along with its partners has taken up the initiative to create a national platform that will bring operators in the two sectors together to broaden discussion and conversation around the key sections of the Act, identify challenges, opportunities and build stronger synergy to promote local content in the insurance sector. He said.

According to the organisers, partners have designed a theme that centres on the possible outcome of the implementation of the Act as it concerns the insurance industry.

At the event, there will be a panel discussion on the subject matter which will include the Nigerian Insurance Association (NIA), Nigerian Council of Registered Insurance Brokers, NCRIB, and Independent Petroleum Producers Group (IPPG) among others.

The conference will be chaired by Muda Yusuf, Chief Executive Officer, CEO Center For The Promotion Of Private Enterprise, CPPE