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Insurance firms assure on payment of claims on Dangote Refinery fire incident

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.Say “we ‘re waiting for details”

 

The nation’s insurance industry has reiterated its commitment to prompt and efficient settlement of all genuine claims.

 

This came on the back of the recent fire incident at Dangote Refinery and Petrochemicals Company located at Lekki Free Trade Zone in Lagos.

 

A reliable industry source who confirmed yesterday that the fire incident at Dangote Refinery was part of the risks which were insured by a consortium of Nigerian insurance companies declared that the insurance companies which provided the cover are capable, ready and willing to make compensation to the multibillion naira Dangote facility when the claim is submitted.

 

The consortium of insurance companies he said is merely waiting for the submission of claims by Dangote adding that such lose is within the capacity of the consortium to handle.

 

“Yes, the risk was insured by a consortium of insurance companies of which my company is one of them but I am not sure that the details and the lose estimate have been submitted .It is something that we can handle. Although the company had described the fire incident as a minor thing but you know that the kind of thing that Dangote Refinery will describe as a minor thing could still be big. But the insurance industry is still waiting”, the source maintained.

 

It would be recalled that a fire outbreak had occurred at the Dangote Refinery’s effluent treatment plant on Wednesday, June 26, 2024. Although no life was lost, the refinery giant which is described as the largest in Africa is said to be taking stock of the extent of damage caused by the fire incident before approaching its insurers with a demand note

 

Group Head, Corporate Communications of Dangote Group Mr Anthony Chiejina who confirmed the incident then said “we have swiftly contained a minor fire incident at our effluent treatment plant today. There is no cause for alarm as the refinery is operating and there is no record of injury or body harm to all our staff on duty”.

 

The 650,000 barrels per day Dangote Petroleum Refinery started production first with the churning out of  diesel and aviation fuel in January of this year following the delivery of its first crude on December 12, 2023.

 

Although the company had made push for the production of refined petroleum products with the receipt of one million barrels of bonny light crude supplied by the Nigerian National Petroleum Company Limited, the dream is yet to be realized. Dangote Refineries has continued to allege sabotage as been responsible for many of the challenges confronting it in the production of refined products top of which is fuel.

 

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