NNPC Saved $30m From Insurance Premiums In 3yrs – Baru

The group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said the application of transparency in the bid process for the selection of insurance and brokers companies that service the corporation has led to saving $30 million in the last three years.

The GMD attributed the savings to the transparency and efficiency process currently deployed by the new management in the selection of the bidding companies as well as the technical competence the winners bring into operation.

Speaking to newsmen in Abuja , yesterday at the 2018/2019 Public Bid Opening for NNPC Insurance Contractors held at the corporation’s headquarters, Baru said NNPC reduced its insurance premium payments from $66 million per annum to a little more than $40 million currently.

Expatiating on how the feat was achieved, he said, “When this administration came on board, the premium we were being charged was over $66 million and we have succeeded in bringing it to a little over $40 million, the transparency and efficiency with which we did the bid tender has brought all the good that is there.

“We have also increased the number of Nigerian participants because if all those that participates and they passed get a bit of the action, it may be small may be less than 1 per cent but they will get a bit of the action that is the way that we are trying to increase value and also increase local participation,” he said.

He stated that the public bid opening process was in compliance with President Muhammadu Buhari’s mandate of driving for accountability and transparency in the conduct of government business.

Earlier while addressing participants at the event, Baru disclosed that over 600 brokers and insurance companies were participating in the bid, above the 500 that participated in the same bid process in the previous year.

Baru stated the the NNPC was the most transparent government agency in the country.

“In terms of transparency and accountability I can guarantee you that there is no other government agency that is more open than us.

“We are the first government agency and I think the only one that is still publishing its account on monthly basis and unfailingly. So everybody that is responsible can look at that and that is the uppermost point of transparency.

“Since we came on board we have been opening all our bids to the international media and the general public. As you witnessed now, it is live and we did it in the presence of all those bidding and so far we’ve not witnessed any point where any person said we have ta/mpered with their bids.

“And we open the bids almost immediately after the bid closure. We ensure that all the due processes are involved, that goes down even to our contracts,” he said.

In his welcome speech, the DGM, Risk Management and Insurance Division, NNPC, Modupe Bamike, said the bid process was to ensure that the corporation’s assets uses the best in terms of financial and technical capability of the insurance companies as well as in compliance with the Nigerian Content Act.

On premium payments, he said, “We will strive as much as possible also in compliance with the law to make sure that we are in position to pay our premiums before the first of April.”

The opening of bid was witnessed by representatives of the Bureau of Public Procurement (BPP) National Insurance Corporation Of Nigeria (NICON), Centre for Transparency Watch among others.