Building Local Content Synergy: NAICOM Urges Insurance Brokers to Create Products for Oil & Gas Sector

In a groundbreaking initiative aimed at fostering collaboration and driving economic growth between the Oil and Gas and Insurance Sectors, the Oriental News Summit 2023 took center stage last week on July 20th in Lagos, Nigeria. Themed “Building Local Content Synergy between the Oil and Gas and Insurance Sectors in Nigeria,” the event brought together key stakeholders, industry experts, policymakers, and business leaders to explore avenues for mutual growth and development.

The summit was organized by Oriental News, a renowned media organization with a commitment to promoting progressive discussions on critical sectors impacting Nigeria’s economy. According to Publisher of Oriental News and Convener of the Summit Yemisi Izuora, the focus of this year’s event was to strengthen the ties between the country’s crucial industries – the oil and gas sector and the insurance sector – by encouraging collaboration and leveraging local content opportunities.

‘‘ A lot of opportunities for insurance businesses are being taken offshore, but there is a new Law that says a certain percentage must be done in in-country. It is only when they are unable to handle such deals, then  it can be taken out. And this must be done throw a broker. An MoU was signed last year, but up till now it has not been implemented. So we decided to organize this event in order to encourage the implementation of that Law, so that businesses can thrive in Nigeria and more jobs can be created for Nigerian people, ’’

During the summit, discussions revolved around the possibilities of the insurance sector providing risk management solutions and tailored policies for the oil and gas industry. This collaboration is expected to reduce financial uncertainties and enhance the confidence of investors and stakeholders in the energy sector. Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Nigeria Mr. Sunday Thomas commended  the organizers of the event, describing it as one that will go a long way in bridging the gap between the two sectors. While speaking with AV1 News Mr. Thomas emphasized the need to intensify the ongoing drive to facilitate platforms that address the demand-supply gap in the oil and gas industry.

Thomas assured that steps were  being taken to address all potential regulatory impediments, support the development of human capacity and ensure technical capacities of insurance suppliers, ensure adequate risk pricing and comprehensive coverages and risk management.

‘‘ I must commend the organizers of this event. This is one event that will impact on both the Oil and Gas Sector a nd the Insurance sector. The Oil and Gas sector remains a sector where Nigeria has comparative advantage, not minding the fact that there is diversification, a lot is accruing to the Nation through the Oil and Gas sector. And by my own judgement, Insurance is one of the sectors that is list benefitting from an area where the Nation has a comparative advantage. We all have to appreciate the efforts of everyone who has made this occasion possible. I believe both sectors will benefit from the summit. ’’

The event also shed light on the importance of utilizing local content in both industries. By promoting the use of local goods and services, Nigeria can boost its economy, create jobs, and reduce its reliance on imports. The oil and gas sector, which has traditionally relied on foreign expertise and materials, can benefit immensely from indigenous involvement, while the insurance sector can offer tailored products that cater to the specific needs of local players.

Government representatives present at the event praised the initiative and pledged their support in creating an enabling environment for the sectors to collaborate effectively. They emphasized that such partnerships align with the nation’s economic diversification agenda and contribute to building a self-reliant economy.

Distinguished speakers at the summit highlighted the immense potential for synergy between these sectors. Nigeria, being a major player in the African oil and gas industry, has witnessed significant growth in recent years. However, to sustain this momentum and ensure the industry’s inclusive growth, collaboration with other sectors is essential.

Oriental News Summit 2023 serves as a crucial platform for stakeholders to network, share ideas, and forge partnerships that will shape the future of the Nigerian economy. The event closed with an optimistic outlook on the potential of the oil and gas and insurance sectors to transform Nigeria’s economic landscape through meaningful cooperation and localized content initiatives.

the authorAV1 NEWS

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