At the heart of public and private infrastructure partnerships, a new regulation is emerging to ensure the protection and sustainability of key assets. The Infrastructure Concession Regulatory Commission (ICRC) has joined forces with the National Insurance Commission (NAICOM) to enforce mandatory insurance coverage for all Public Private Partnership (PPP) assets under Federal Government concession agreements.
The groundbreaking collaboration was formalized during a courtesy visit by the Director General of NAICOM, Mr. Olusegun Ayo Omosehin, to the Director General of ICRC, Dr. Jobson Oseodion Ewalefoh, in Abuja. The strategic partnership is aimed at strengthening insurance compliance for PPP assets, in accordance with Section 7(2)a of the ICRC Act (2005), which requires concessionaires to take out insurance policies approved by NAICOM.
Dr Ewalefoh stressed the critical importance of ensuring insurance compliance for PPP assets, emphasizing the mandatory nature of the measure: “Insurance for PPP assets is not an option but a requirement.” He noted that the ICRC already requires proof of insurance for new projects and will soon extend this compliance requirement to ongoing projects.
The implementing modalities are expected to be published by the first quarter of 2025. Mr Omosehin, for his part, commended the ICRC’s proactive stance, saying that “NAICOM is responsible for ensuring that critical national assets are adequately insured.” He stressed the need for inter-agency collaboration: “This partnership will enable us to ensure compliance and ensure that PPP assets are adequately insured.”
The meeting marked the establishment of a joint technical committee to develop modalities to optimize insurance coverage for government PPP assets. NAICOM has also committed to training ICRC officers to strengthen the enforcement process. This initiative is aimed at protecting critical national assets by ensuring that they are adequately insured in accordance with the law.
This new regulation underscores the critical importance of protecting PPP assets in the country by ensuring that they are adequately insured to ensure their long-term sustainability. The collaboration between ICRC and NAICOM marks a significant step forward in the area of protecting key infrastructure in Nigeria.