The National Insurance Commission (NAICOM) and the Infrastructure Concession Regulatory Commission (ICRC) have announced a partnership to enforce insurance provisions for assets under public-private partnership (PPP) arrangements, as mandated by law.
This agreement was sealed during a courtesy visit by the Commissioner for Insurance, Mr. Olusegun Omosehin, to the Director General of ICRC, Dr. Jobson Ewalefoh, at the ICRC headquarters on Monday.
Strengthening Infrastructure Resilience
In a statement released by NAICOM, the collaboration was described as a major step forward in ensuring Nigeria’s infrastructure projects are adequately insured to mitigate risks, safeguard investments, and foster economic growth.
“This partnership marks a significant milestone in Nigeria’s infrastructure development. It will ensure that infrastructure projects are properly insured to promote economic stability and investor confidence,” the statement said.
Shared Commitment to National Development
NAICOM’s Commissioner for Insurance emphasized the regulatory body’s role in advising the government on insurance matters and protecting strategic national assets. This partnership aligns with ICRC’s mandate to drive PPPs that address Nigeria’s infrastructure deficit.
Dr. Ewalefoh of the ICRC echoed this sentiment, noting that robust insurance coverage is vital for attracting investments and ensuring the success of PPP projects.
“By working together, NAICOM and ICRC can establish a framework that ensures all PPP projects are adequately insured, reliable, and compliant with regulatory standards,” he said.
Joint Implementation Plans
To formalize the collaboration, both agencies have formed a joint committee tasked with defining the modalities for implementation. A compliance directive emphasizing the insurance requirements for all PPP contracts will be issued in January 2025.
The partnership is expected to have far-reaching implications, strengthening investor confidence and accelerating Nigeria’s infrastructure development.
Addressing Delays in PPP Projects
This collaboration comes on the heels of ICRC’s recent announcement to fast-track stalled PPP projects that have remained inactive for over a year since receiving Federal Executive Council approval.
ICRC, established to regulate PPP initiatives and address the country’s significant infrastructure gap, sees the partnership with NAICOM as a critical tool for improving risk management and project sustainability.
A Path to Economic Growth
With this partnership, Nigeria is set to bolster its infrastructure resilience, improve regulatory compliance, and attract more investments to bridge its infrastructure deficit. By ensuring insurance coverage for PPP projects, the collaboration promises to deliver long-term benefits to the nation’s economy and its citizens.
