The Infrastructure Concession Regulatory Commission (ICRC), in partnership with the National Insurance Commission (NAICOM), is set to roll out new guidelines mandating insurance coverage for assets under Public-Private Partnership (PPP) arrangements by the first quarter of 2025.
This development, announced after a meeting between NAICOM Commissioner for Insurance, Mr. Olusegun Omosehin, and ICRC Director-General, Dr. Jobson Ewalefoh, aligns with Section 7(2)a of the ICRC Act (2005). The Act mandates concessionaires to secure insurance policies approved by NAICOM to safeguard the value of federal assets.
Key Highlights of the Policy
- Mandatory Insurance Coverage:
Concessionaires must provide proof of insurance for PPP projects, ensuring compliance with existing laws. - Scope of Application:
The guidelines apply to all federal assets under PPP arrangements, both new and ongoing projects. - Enforcement Mechanisms:
A technical committee, composed of ICRC and NAICOM officers, will oversee compliance and verify that appropriate insurance policies are in place. - Training and Capacity Building:
NAICOM will offer specialized training to ICRC officers to equip them with the expertise needed to implement the guidelines effectively.
Ensuring Strategic Asset Protection
Speaking at the event, Dr. Ewalefoh emphasized the importance of protecting federal assets:
“Insurance of PPP assets is not optional but mandatory. Together with NAICOM, we will ensure compliance to safeguard the value of these assets.”
Similarly, Mr. Omosehin highlighted NAICOM’s commitment to the collaboration, noting:
“This partnership will enforce the law and ensure PPP projects are adequately insured. NAICOM is also ready to provide necessary training for seamless implementation.”
What This Means for Concessionaires
From 2025, concessionaires undertaking federal PPP projects must secure insurance policies tailored to the value and nature of the asset. Non-compliance could lead to legal and operational consequences, as regulatory bodies intensify efforts to uphold infrastructure standards.
This policy underscores Nigeria’s commitment to maintaining sustainable infrastructure development while aligning with global best practices.
