In a bid to safeguard public-private partnership (PPP) assets in Nigeria, the Infrastructure Concession Regulatory Commission (ICRC) has partnered with the National Insurance Commission (NAICOM) to enforce mandatory insurance coverage for all concessioned projects.
This collaboration, announced during a meeting between Jobson Ewalefoh, Director-General of ICRC, and Olusegun Omosehin, CEO of NAICOM, aims to ensure compliance with Section 7(2)a of the ICRC Act (2005), which mandates project proponents to secure appropriate insurance for concessioned assets.
Ewalefoh emphasized that the insurance of strategic federal government assets under PPP arrangements is a legal obligation.
“We have to ensure that concessionaires obtain the appropriate insurance policy required by law in line with the value of the asset,” Ewalefoh said.
He added that proof of insurance is now a prerequisite for new PPP projects and that modalities will soon be established to ensure compliance for ongoing projects.
A formal framework for this enforcement will be issued by January 2025.
Omosehin described the partnership as essential for enforcing the legal requirement and ensuring critical national assets are adequately insured.
“We are here to forge a partnership that will enable the enforcement of the provisions of the law,” he said.
NAICOM has also pledged to offer technical training for ICRC officers involved in the newly established joint technical committee, further strengthening the collaboration.
The new enforcement strategy signals a tighter regulatory environment for concessionaires.
Moving forward, failure to provide evidence of adequate insurance cover could jeopardize project approvals or lead to penalties.
The partnership between ICRC and NAICOM underscores the government’s commitment to enhancing the sustainability and resilience of PPP projects.
By ensuring that assets are insured, the federal government aims to protect public investments, reduce risk, and build confidence in Nigeria’s PPP framework.
As the January 2025 compliance deadline approaches, stakeholders are expected to align with the new requirements, marking a pivotal shift in how PPP projects are managed and safeguarded in the country.