'Seun Ibukun-Oni, Abuja
In a groundbreaking move to enhance electrical safety and risk management in Nigeria’s power sector, the Nigerian Electricity Management Services Agency (NEMSA) has announced that insurance coverage will now be a mandatory requirement for the certification of electrical installations.
A statement by Ama Umoren Mrs of NEMSA's Communications and Protocol Unit disclosed that this development follows the signing of a Memorandum of Understanding (MoU) between NEMSA and the National Insurance Commission (NAICOM), aimed at strengthening compliance with safety standards and mitigating risks associated with electrical accidents.
The MoU, signed at NAICOM’s headquarters, establishes a collaborative framework to ensure that all electrical installations in residential, commercial, and industrial premises are certified by NEMSA before insurance policies are processed. This initiative aligns with the Federal Government’s broader agenda to improve the reliability and safety of Nigeria’s electricity infrastructure.
Speaking at the signing ceremony, Engr. Aliyu Tukur Tahir, Managing Director and Chief Executive Officer of NEMSA, emphasized the significance of the partnership. “This collaboration with NAICOM marks a pivotal step in our efforts to ensure that all electricity consumers, operators, and investors adhere to the highest safety and risk management standards,” he said.
Engr. Tahir, who also serves as the Chief Electrical Inspector of the Federation, further explained that the new policy would require all facility applicants seeking NEMSA’s statutory inspection, testing, and certification to provide proof of insurance coverage. “Going forward, it will be a requirement by NEMSA that all facilities undergoing inspection and certification must be insured. This is to ensure safety and mitigate risks associated with electrical installations,” he stated.
On his part, Mr. Olusegun Ayo Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, underscored the importance of insurance in addressing electrical hazards and infrastructure failures. “Insurance plays a crucial role in cushioning the effects of electrical accidents and 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 awareness campaigns, regulatory enforcement, and information-sharing initiatives to promote electrical safety and insurance adoption across the power sector. This collaborative approach is expected to significantly reduce the frequency and impact of electrical accidents, which have been a persistent challenge in Nigeria.
The new policy is expected to have far-reaching implications for Nigeria’s power sector. By mandating insurance coverage for electrical installations, NEMSA and NAICOM aim to create a safer and more reliable electricity supply chain. This move will not only protect lives and property but also boost investor confidence in the sector.
For facility owners and operators, the requirement to obtain insurance coverage before certification means an additional layer of accountability and responsibility. However, it also provides a safety net in the event of electrical accidents, ensuring that affected parties can recover losses and damages more effectively.
The NEMSA-NAICOM partnership marks a significant milestone in Nigeria’s quest for a safer and more sustainable electricity industry. By integrating insurance compliance into electrical safety enforcement, the two agencies are setting a new standard for risk management in the power sector.
This initiative is expected to complement ongoing efforts by the Federal Government to address the challenges plaguing Nigeria’s electricity infrastructure, including frequent power outages, equipment failures, and safety violations. With the implementation of this policy, stakeholders hope to see a reduction in electrical accidents and an overall improvement in the quality of electricity services across the country.
The mandatory insurance requirement for electricity certification represents a proactive approach to addressing the safety and reliability challenges in Nigeria’s power sector. As NEMSA and NAICOM roll out this policy, the focus will be on ensuring widespread compliance and fostering a culture of safety and risk management among electricity consumers and operators.
This development is a testament to the Federal Government’s commitment to creating a safer, more efficient, and sustainable electricity sector, ultimately contributing to Nigeria’s socio-economic development.
