The insurance industry is on edge as insurers and brokers eagerly await the release of appointment letters from the Nigerian National Petroleum Company Limited (NNPC Ltd.). With the 2024 insurance covers set to expire on April 1, 2025, the delay has sparked anxiety among stakeholders.
Industry insiders reveal that the NNPC Ltd.'s silence has raised concerns, particularly since the federal government declared Monday, March 31, and Tuesday, April 1, as public holidays. Approved bidders were expecting to be contacted by the NNPC Ltd. by now, but the lack of communication has created uncertainty.
The ripple effects of this delay are being felt across the industry. The non-release of allocations by the federal government has stalled the 2025 insurance plans for most government Ministries, Departments, and Agencies (MDAs). In a bid to mitigate the situation, MDAs are now requesting brokers and insurers to extend their insurance coverage for an additional month, pending the release of allocations from the 2025 national budget.
As the insurance industry waits with bated breath for the NNPC Ltd.'s next move, one thing is clear: the delay has created a sense of unease, and stakeholders are eager for a resolution.
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