To develop an approach to guarantee best possible participation by the local market
The National Insurance Commission (NAICOM) and the Nigerian National Petroleum Corporation (NNPC) are joining forces with the domestic insurance companies to develop an approach to guarantee best possible participation by the local market – reported in Leadership Nigeria.
The government had set a target of 45% local content by 2006, and later increased it to 70% by 2010.
The set targets for local content implies that all insurance risks associated with oil and gas business (including prospecting, exploration, drilling, constructions, shipping, distribution, marketing, and transportation) are to be insured in Nigeria with registered Nigerian insurance underwriting companies.
According to the company, the Nigerian insurance will be expressing to the government and multinational oil companies that it has the capacity and workable strategies for achieving and sustaining the local content target. It would also assure the stakeholders that claims obligation would be met in a timely manner.
Oluyinka Akintunde, Special Assistant to the Minister of State for Finance, Nigeria, said: “The partnership was aimed at growing capacity of the domestic insurance companies in the oil and gas business.