The Federal Government has formulated and issued an insurance guideline to drive the retention of oil sector financial spending in Nigeria and help reverse capital flight.
Speaking on the topic, “Strengthening Nigerian Content Implementation with the Seven Ministerial Regulations,” at the ongoing Nigeria Oil and Gas conference in Abuja on Monday, the Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote, said the guideline was by the law.
He said, “With regards to insurance of assets and liabilities in the oil and gas industry, Sections 49 and 50 of the Nigerian Oil and Gas Industry Content Development Act (2010) state the requirements for players in the Nigerian oil and gas activities on the need to engage local insurance companies for insuring their assets, liabilities and so on.
“It is in a bid to carry out its key mandate of enforcing compliance with the provisions of the NOGICD Act that the board, in collaboration with the National Insurance Commission, developed and issued the insurance guideline for the oil and gas industry.
“The guideline will contribute significantly towards promoting the development of insurance services in-country and it will also drive the retention of financial spending in Nigeria thereby contributing towards reversing capital flight.”
Wabote further explained that the guideline would also help to create a database of all insurance programs procured by operators, project promoters, alliance partners, and Nigerian indigenous companies, to enable the board to monitor the utilization of in-country insurance capacity.
“At NCDMB, we believe that any in-country value retention realized from the insurance sector will further enhance the delivery of our 70 percent Nigerian content target by the year 2027,” he stated.
