The President and Chairman of the Governing Board of the Nigerian Council of Registered Insurance Brokers, Bàbàtunde Oguntade, has raised concerns over the Federal Government’s lack of insurance coverage for critical assets, despite the inclusion of allocations for insurance premiums in the national budget.
Speaking at a press conference held at the Council’s headquarters in Lagos, Oguntade highlighted that significant infrastructure projects, including the Lagos-Calabar Highway, are currently uninsured. He revealed that while insurance provisions are embedded in the budget, the allocated premiums are often diverted to contracts instead of being used for the intended purpose.
Oguntade explained, “Over the years, we have seen insurance allocations in the budget, but the premiums are not paid. Instead, the funds are redirected into contracts that end up being uninsured. For instance, the Lagos-Calabar Highway lacks any insurance component.”
Efforts are ongoing to address this issue. He mentioned that the Council had engaged with key government officials, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Senator Abubakar Bagudu. These meetings aim to promote collaboration, address challenges, and advocate for better inclusion of insurance in national projects.
Oguntade commended the government’s investment in critical sectors such as transportation, energy, and housing through initiatives like the National Integrated Infrastructure Master Plan and the Economic Recovery and Growth Plan. However, he emphasized the need to incorporate insurance as an essential component of these projects. “Insurance mitigates risks and provides financial protection against unforeseen losses, making it indispensable for infrastructural development,” he said.
He also addressed the enforcement of third-party motor insurance, which is set to begin nationwide on February 1, under the direction of the Inspector-General of Police. According to Oguntade, this initiative will benefit the insurance sector, boost compliance, and enhance public awareness of the benefits of affordable third-party coverage.
“The enforcement of third-party motor insurance is a positive step. If people understood the value of what N15,000 could do for them, they wouldn’t need to be chased to comply. With the inclusion of ECOWAS benefits, we are optimistic about improvements in this area,” he stated.
Oguntade also noted that the insurance sector must expand its role in addressing the risks associated with agricultural activities. He highlighted how past floods affecting agribusiness led to significant insurance claims, underlining the need for increased coverage in the sector.
In his remarks, Oguntade called for greater attention to the importance of insuring critical national assets and projects. “Adequate insurance is key to safeguarding the investments made in Nigeria’s infrastructure. It’s time to take this seriously to promote economic growth and sustainability,” he concluded.
This call highlights the need for stronger collaborations between the government, insurance brokers, and other stakeholders to ensure that Nigeria’s infrastructure and development projects are adequately protected against risks
