NCDMB woos local insurance to oil, gas business participation

THE Nigerian Content Development and Monitoring Board ( NCDMB) has revealed a plan to raise participation of Nigerian insurance’s participation in the oil and gas business to 70 per cent.

The new Executive Secretar y of the NCDMB, Felix Omatsola Ogbe, gave the assurance at the National Insurance Commission ( NAICOM) head office in Abuja when he paid a familiarisation visit to the Commission. The NCDMB boss said the purpose of the visit was to relate himself with the chief executives of institutions that are represented on the NCDMB’S Governing Council as well as explore areas of collaboration.

Ogbe said the NCDMB has renewed its commitment to deepen partnerships with key agencies of the federal government to achieve the economic aspirations of the administration, adding that cooperation and teamwork were key to accomplishing any noble objective.

He promised that NCDMB would work closely with NAICOM to review and operationalise the insurance regulations jointly issued by both agencies in June 2022 to get Nigerian oil and gas compa - nies to patronise local insur - ance firms and retain spend - ing on risk management in the economy.

The Commissioner for Insurance, Sunday Thomas, congratulated the Executive Secretary on his appointment, noting that he would be building on the solid foundation laid by his predecessors.

Thomas described NCDMB as a formidable institution and commended the founding fathers of the board for their foresight in creating such an important agency.

He also lauded the former executive secretaries of the NCDMB for their innovative projects and achievements while in office.

The commissioner highlighted the importance of insurance as the oxygen of business operations.

He expressed concern that the insurance services regulations that were signed by the commission and NCDMB had yet to be implemented.

It will be recalled that the federal government had set a target of 70 per cent local content for the underwriting of oil and gas risks, implying that 70 per cent of all insurance risks associated with the oil and gas business including prospecting, exploration, drilling, constructions, shipping, distribution, marketing and transportation are to be insured by Nigerian insurance companies.

He regretted that energy risks are still substantially insured abroad due to the low capacity of the local insurance industry.