The National Insurance Commission (NAICOM) and the Nigerian Electricity Management Services Agency (NEMSA) have signed a Memorandum of Understanding (MoU) to enhance electrical safety and strengthen insurance compliance in Nigeria.
In a statement, NAICOM described the agreement as a strategic partnership aimed at establishing a framework for mutual cooperation in fulfilling regulatory obligations. The collaboration will prioritize safeguarding lives and property by addressing risks associated with electrical incidents.
Both agencies have expressed commitment to ensuring stricter enforcement of safety standards and promoting insurance coverage in the power sector. This partnership is expected to enhance public confidence in electricity-related safety measures while reinforcing compliance with insurance regulations.
This initiative, focused on improving safety, comes at a time when fire incidents—some linked to electrical faults—are causing significant loss of lives and property.
The Managing Director/Chief Executive Officer of NEMSA, Aliyu Tahir, emphasized the agency’s mandate to enforce technical standards and regulations, conduct inspections, and certify electrical installations.
He stated that a partnership between NAICOM and NEMSA would enhance safety and reduce risks. As part of this collaboration, both agencies have established a framework requiring all electrical installations in residential, commercial, and industrial premises—including hazardous locations, industries, and factories—to be certified by NEMSA before insurance policies can be processed by insurance companies.
Tahir emphasized that the initiative aims to enforce strict safety and risk management standards for electricity consumers, operators, and investors. He highlighted that integrating insurance compliance with electrical safety measures will help protect lives, investments, and the integrity of the power sector.
NAICOM’s Commissioner for Insurance, Olusegun Ayo Omosehin, stressed the need for power sector players to adopt insurance as a key risk management tool. The partnership with NEMSA will focus on enforcing compliance with insurance policies, conducting joint awareness campaigns, and strengthening regulatory measures to enhance electrical safety and risk mitigation in the sector.
