Stakeholders in Nigeria’s insurance industry have urged the government and industry players to strengthen the capacity of local insurance companies so they can handle more risks in the oil and gas sector.
The Managing Director and Chief Executive of Royal Exchange Plc, Idu Okeahialam, said Nigeria can only enjoy the full benefits of its local content policy when indigenous insurers play a bigger role in protecting oil and gas investments.
She explained that keeping insurance premiums within the country would help grow local businesses, create more jobs, increase investment, and strengthen Nigeria’s financial sector.
Okeahialam said local content should go beyond Nigerians owning oil assets. According to her, Nigerians should also finance, insure, manage, and protect those assets to achieve true economic growth.
She described insurance as a key part of economic development, noting that it gives businesses and investors the confidence to fund major projects. Without proper insurance and risk management, she said, investment becomes more expensive and economic activities slow down.
She also pointed out that the oil and gas industry faces many risks, including operational accidents, environmental issues, supply chain challenges, political uncertainty, and growing cyber threats.
According to her, these challenges make it necessary for the insurance and oil and gas industries to work more closely together. She added that every insurance premium kept in Nigeria supports economic growth, creates employment opportunities, and helps develop skilled professionals.
Okeahialam concluded that building a stronger local insurance industry will strengthen the oil and gas sector, increase value retention within the country, and contribute to Nigeria’s overall economic development.
