Monrovia—The Administration Crew of the Nationwide Insurance coverage Company of Liberia (NICOL) has unveiled a daring fiscal reform and nationwide asset safety plan designed to generate new streams of home income, defend public belongings, and assist the Authorities’s ARREST Growth Agenda.
By: Yawah Y. Jaivey
The plan, submitted final week to the Ministry of Finance and Growth Planning’s Price range Listening to Committee, identifies strategic pathways for income mobilization, fiscal self-discipline, and institutional reform by the enforcement of current insurance coverage legal guidelines and the reintroduction of obligatory insurance coverage protection for all authorities automobiles and belongings.
“On the coronary heart of the initiative is a tripartite Memorandum of Understanding (MOU) between NICOL, the Basic Providers Company (GSA), and the Ministry of Transport (MoT). Below the proposed framework, no authorities car will probably be coded, registered, or renewed with out legitimate insurance coverage protection from NICOL, in step with the provisions of the NICOL Act,” a NICOL assertion said.
NICOL’s Authorized Mandate: Unique Energy to Insure Authorities Property
In keeping with NICOL, it authority is grounded in Part III of the Nationwide Insurance coverage Company of Liberia Act (PRC Decree No. 81 of 1984), which states that, “The Company shall have the unique energy to impact all insurances of the Authorities of Liberia, public companies, and some other enterprise wherein the Authorities of Liberia is fifty % (50%) shareholder or extra.”
The assertion added, “This statutory mandate establishes NICOL because the unique insurer of government-owned and government-controlled entities. Nevertheless, compliance with this regulation has deteriorated over time. Present information reveal that over 80% of presidency automobiles are usually not insured, leaving public belongings uncovered to important monetary and operational dangers.”
Alignment with the Authorities’s ARREST Agenda
The proposed NICOL plan, the administration stated, is absolutely aligned with the Authorities of Liberia’s ARREST Agenda underneath President Joseph Nyuma Boakai, underneath the pillar of Rule of Regulation and Governance.
NICOL stated the by imposing compliance with current insurance coverage legal guidelines and strengthening institutional accountability, the plan reinforces good governance and public sector integrity.
The assertion added that its plans additionally assist the Training and Empowerment pillar of the federal government by the implementation of the coaching and certification packages for younger Liberians in underwriting, claims administration, and danger evaluation, NICOL goals to construct native human capability within the insurance coverage sector.
The NICOL divulged that the plans intent to cowl the ARREST’s agenda Sanitation and Infrastructure element with the complete implementation of a initiative that can assist protect public belongings—together with authorities automobiles and infrastructure—lowering wasteful spending and bettering asset upkeep tradition.
Additionally, NICOL assertion revealed that the company deliberate to assist the pillar of the federal government’s growth agenda that focuses on tourism and financial progress by the promotion of a steady, insured, and well-managed public sector surroundings, which contributes to investor confidence and helps the broader tourism and enterprise local weather.
Nevertheless, the administration of the Nationwide Insurance coverage Company of Liberia (NICOL) expressed optimism that these reforms immediately assist the ARREST Agenda’s overarching goal of accountability, effectivity, and people-centered governance.
Administrative Regulation and Presidential Backing
On the identical time, NICOL administration crew has emphasised that implementation of this reform should be executed by an Administrative Regulation issued collectively by the Ministry of Finance and Growth Planning and the Workplace of the President.
The regulation, NICOL administration stated, will institutionalize authorities insurance coverage compliance and make insurance coverage a compulsory funds line for all authorities entities starting FY2026, embedding it inside the nationwide fiscal and expenditure framework.
Defending Public Property and Increasing Fiscal Area
“Between FY2018 and FY2024, the Authorities of Liberia reportedly spent over US$5.3 million on repairs and replacements for broken or written-off automobiles—expenditures that would have been mitigated by insurance coverage,” the assertion learn.
In keeping with NICOL’s administration, underneath the brand new MOU, NICOL would take up as much as 80% of those dangers, permitting authorities to scale back fiscal burdens, guarantee predictable budgeting, and enhance accountability in asset administration.
Projected Income and Financial Advantages
Additionally, NICOL administration has projected that enforcement of the nationwide car and asset insurance coverage coverage may generate over US$1.1 million in annual premiums, producing US$324,500 in annual direct authorities income by company taxes, excise duties, and dividends.
Job Creation and Financial Inclusion
The assertion additional that NICOL newest plan can be anticipated to stimulate job creation for odd Liberians by direct and oblique financial actions.
Below direct employment, NICOL promised to develop its workforce to incorporate new insurance coverage brokers, claims officers, danger assessors, and compliance screens throughout all 15 counties.
NICOL additionally promised to create oblique employment by the institution of partnerships with native garages, automotive dealerships, surveyors, and ICT companies, which can create a whole lot of auxiliary jobs in car evaluation, restore, logistics, and administrative providers.
As a part of its plan for youth empowerment, NICOL has disclosed that it intends to collaborate with universities and vocational establishments to coach younger professionals in underwriting, claims, and digital insurance coverage providers—creating sustainable employment pathways.
“In complete, the initiative may create or maintain over 500 jobs nationwide throughout its first three years of implementation,” the assertion added.
Reviving the ten% Obligatory Cession Regulation
The plan additionally requires strict enforcement of Part XVII of PRC Decree No. 81 (1984), which mandates all non-public insurance coverage corporations to cede 10% of every coverage issued or renewed to NICOL.
NICOL’s said added: “Non-compliance with this provision since 2000 has led to an estimated US$57 million in income loss. Implementing it at this time may generate roughly US$2.5 million yearly, strengthening NICOL’s solvency and Liberia’s insurance coverage ecosystem.”
Fiscal and Institutional Affect
NICOL asserted that the MOU implementation and 10% cession enforcement may yield over US$3 million yearly in fiscal affect—through taxes, dividends, and expanded native enterprise exercise—whereas revitalizing public confidence in nationwide establishments.
In keeping with Hon. Abdullah S. Swaray, Performing Managing Director of NICOL, the plan is absolutely in concord with President Boakai’s ARREST Agenda, which ensures accountability underneath the Rule of Regulation, helps youth empowerment by job creation, and promotes effectivity in managing nationwide assets. For the primary time in years, he stated, Liberia will defend its public belongings whereas producing new income for growth.”
A Strategic Step Towards Fiscal Self-discipline and Institutional Reform
The administration stated NICOL’s reform proposal marks a cornerstone of its 2025–2029 Transformation and Market Restoration Technique, representing a key step towards modernizing the insurance coverage sector, guaranteeing monetary resilience, and reinforcing state-owned enterprise efficiency.
The Administration Crew reaffirmed its dedication to work carefully with the Ministry of Finance, Central Financial institution of Liberia, and the Workplace of the President to make sure the regulation’s full operationalization by 2026.
“With the ARREST Agenda as our information, NICOL’s reform is not going to solely generate income however will even empower Liberians, defend public belongings, and construct a tradition of accountability,” Swaray stated.
