…To Issue Compliance Modalities In Q1 2025
The Infrastructure Concession Regulatory Commission (ICRC) has partnered the National Insurance Commission (NAICOM) to mandate concessionaires of government assets to procure insurance covers for assets under Public Private Partnership (PPP) arrangements.
The commissions reached the agreement when the Commissioner for Insurance/Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, led a management team of the commission on a courtesy visit to the Director-General of the ICRC, Dr Jobson Oseodion Ewalefoh on Monday in Abuja.
Speaking during the interaction with the Commissioner for Insurance, the Ewalefor reiterated his earlier statement at a visit to the Minister of Interior, where he pointed out that all strategic assets of the Federal Government must be insured, and commended the NAICOM team for following it up with a visit.
He maintained 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.’
Omosehin expatiated: “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,” he stressed.
He further promised 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.
Jobson explained 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, adding that the modalities will be issued in the first quarter of 2025 to all concessionaires.
In his remarks, the CEO of NAICOM pointed out that the Insurance Commission was charged with regulating and supervising the insurance sector in Nigeria, while also advising the government and its agencies on insurance matters.
He clarified: “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 added.
The NAICOM boss commended the Director-General 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 training 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 would work out the modalities for optimizing insurance covers for all government’s PPP assets.
