Nigeria: PPP Assets to Receive Insurance Coverage Starting Next Year

The Infrastructure Concession Regulatory Commission (ICRC), in partnership with the National Insurance Commission (NAICOM), will roll out new guidelines in early 2025 mandating the insurance of government assets under Public-Private Partnership (PPP) arrangements.

The announcement follows a meeting between NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, and ICRC’s Director-General, Dr. Jobson Ewalefoh, in Abuja. During the meeting, both organizations reaffirmed their commitment to enforcing insurance compliance for strategic government assets managed through PPPs.

Mandatory Insurance Requirement

According to Section 7(2)(a) of the ICRC Act (2005), concessionaires must obtain adequate insurance policies for PPP projects through insurers approved by NAICOM. Speaking on this requirement, Dr. Ewalefoh emphasized that insuring PPP assets is not optional but a legal obligation:

“We must ensure that concessionaires obtain the appropriate insurance policy for their projects in line with the value of the assets. Collaborating with NAICOM will allow us to verify that the correct insurance policies are in place.”

He further stated that the ICRC is already requiring proof of insurance coverage for newly initiated PPP projects. Modalities are also being developed with NAICOM to ensure that concessionaires of ongoing projects meet this requirement.

Collaboration to Drive Compliance

Mr. Omosehin highlighted the critical role of the partnership between NAICOM and ICRC in enforcing this legal provision. He noted that the initiative originated from discussions between Dr. Ewalefoh and the Minister of Interior, underscoring the need for robust collaboration:

“This meeting signifies the beginning of a vital partnership to enforce compliance with the law. Together, NAICOM and ICRC can create a framework that ensures PPP assets are properly insured.”

NAICOM has also pledged to provide specialized training for ICRC officers who will participate in a technical committee to finalize the new guidelines.

Implementation Timeline

The guidelines are expected to be published by the first quarter of 2025, providing clear directives for concessionaires to comply with the mandatory insurance requirement. This move aims to safeguard government assets and ensure that risks associated with PPP projects are adequately mitigated.

The initiative marks a significant step toward strengthening Nigeria’s PPP framework, enhancing asset protection, and fostering greater accountability in project management.