In a landmark move to enhance electrical safety and insurance compliance in Nigeria, the Nigerian Electricity Management Services Agency (NEMSA) and the National Insurance Commission (NAICOM) have signed a Memorandum of Understanding (MoU) to enforce stricter regulations on insuring electrical installations.
The agreement, signed in Abuja on Friday, mandates that all electrical installations in residential, commercial, industrial, and hazardous locations must be certified by NEMSA before any insurance policy can be processed by insurers. This means that no insurance coverage will be granted for installations that fail to meet NEMSA’s safety standards.
Strengthening Safety and Compliance
This collaboration aligns with the federal government’s commitment to improving the reliability and security of Nigeria’s power sector. It aims to prevent electrical accidents and infrastructure failures by ensuring compliance with established safety protocols before insurance policies are issued.
Speaking at the signing event, Aliyu Tukur Tahir, Managing Director/CEO of NEMSA, emphasized that the initiative would significantly mitigate risks associated with substandard electrical work.
“This partnership with NAICOM is a significant step towards ensuring that all electricity consumers, operators, and investors adhere to the highest safety and risk management standards. By integrating insurance compliance into electrical safety enforcement, we are safeguarding lives, investments, and the overall integrity of the power sector,” he stated.
Tahir, who also serves as the Chief Electrical Inspector of the Federation, further noted that NEMSA will now require all applicants for facility inspections, testing, and certification to present proof of insurance coverage as part of risk mitigation measures.
On his part, Olusegun Ayo Omosehin, Commissioner for Insurance and CEO of NAICOM, highlighted the critical role of insurance in protecting against electrical hazards and infrastructure-related risks.
“Insurance plays a crucial role in cushioning the effects of electrical hazards and infrastructure-related incidents. Through this MoU, we will work closely with NEMSA to enforce compliance with relevant insurance policies, ensuring that the power sector operates with adequate risk mitigation mechanisms in place,” he said.
The partnership will involve:
– Joint public awareness campaigns to educate stakeholders on the importance of electrical safety and insurance compliance.
– Stricter enforcement of safety regulations across residential, commercial, and industrial sectors.
– Information-sharing initiatives between NEMSA and NAICOM to enhance regulatory oversight.
This strategic collaboration marks a major step toward improving electrical safety, reliability, and sustainability within Nigeria’s power sector. Both agencies have reiterated their commitment to reducing risks, protecting investments, and ensuring compliance with industry safety standards.
