The National Insurance Commission (NAICOM) has affirmed that the oil and gas sector will no longer be subjected to the risk of product overpricing due to the removal of fuel subsidy.
Speaking in Lagos on building local content, the Commissioner for Insurance of NAICOM, Mr. Sunday Thomas said the federal government’s local content initiative is part of its plan to develop the human and material resources of its oil and gas sector.
“The intention of synergy is more tilted towards encouraging preventive, detective; as well as corrective and compensatory regulatory controls.
“It is beneficial, to also state, that necessity is on us to ensure that risks are accurately priced and professional advice is given to ensuring entities, especially in the Oil and Gas space, as it poses a vantage position to avoiding overpricing of products, underrating of risks, negligent omission of necessary covers and its consequential effect on avoidable pressure and burden on finances.
“However, the company’s exposures that were not accurately reviewed could deter incentivization from the regulator that could be provided in the future to compensate for risk improvements deployed to reduce potential environmental liabilities, or the advantages enjoyable by deploying capital on the transition from high-based carbon energy and its environmental impacts.
“This is in contemplation with the pressure to reduce Green-House Gas (GHG) emissions and transition to Clean and Renewable Energy.
“Also, the disclosure and reporting requirement of Section 49 of the Nigeria Oil and Gas Industry Content Development (NOGICD) Act is to ultimately enhance regulatory decisions that will benefit the Oil and Gas Industry and the nation at large,” Thomas said.
