ICRC Partners NAICOM To Insure FG’s PPP Assets
- Compliance guidelines set for Q1 2025
Set to mitigate potential risks and protect investments in the country, the Infrastructure Concession Regulatory Commission (ICRC) and the National Insurance Commission (NAICOM) will collaborate to ensure insurance coverage for the assets under Public Private Partnership (PPP) arrangements.
The development has both commissions agreeing that in compliance with existing laws, concessionaires of government assets must procure such covers for their projects without further delay as part of efforts at promoting Nigeria’s economic growth.
Considered a milestone in Nigeria’s infrastructure development, the pact was struck when the Chief Executive Officer of NAICOM, Mr Olusegun Ayo Omosehin, with his management team, visited the Director General of ICRC, Dr Jobson Oseodion Ewalefoh in Abuja on Monday.
According to ICRC Director General, Dr Ewalefoh, insurance of PPP assets is not optional but mandatory as 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.”
He further said; “So, 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”.
While reiterating his earlier comments during a visit to the Minister of Interior, where he stressed the need for all strategic assets of the Federal Government to be insured, Dr Ewalefoh commended the NAICOM management for following it up with a visit, adding that the ICRC has already kick-started the process by requesting concessionaires of new PPP projects to provide proof of insurance cover for the projects they are about to undertake.
He stated that, in collaboration with NAICOM, the ICRC would develop procedures to ensure compliance among concessionaires of ongoing projects that have not yet obtained insurance for their projects, explaining further that these guidelines would be communicated to all concessionaires in the first quarter of 2025.
In his remarks, the NAICOM Chief Executive, Mr Olusegun Omosehin said as Nigeria’s apex insurance regulator, the Commission plays an important role in advising the government and its agencies on insurance matters with the aim of protecting strategic government assets.
According to him; “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 the 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”.
Omosehin praised the ICRC boss over his position on enforcing insurance, noting that the power to enforce insurance across all sectors is not contained in the NAICOM Act but only in the Acts of other agencies like ICRC.
However, he pledged NAICOM’s readiness to offer effective training and capacity building for ICRC officers who will be part of the technical committee.
A statement by Ifeanyi Nwoko, Acting Head of Media and Publicity, ICRC, said among the meeting’s highlights was the appointment by both Chief Executives to head a Joint Technical Committee (JTC) that will determine the modalities for optimizing insurance coverage for all government Public-Private Partnership (PPP) assets.
