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Local Content on Oil & Gas Underwriting; Issues and Challenges

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Three years after the much- lauded federal government policy, expanding the scope of local content on oil and gas underwriting, there are indications that the policy remains threatened.  These threats range from unethical practices to undulating playing field.  The implication is that if these challenges are not adequately addressed, doors will continually open to capital flight.
Ultimately, this would impact negatively on the country’s balance of trade.
Sources revealed that some insurance companies are still involved in the unethical practices in collusion with foreign underwriters.  The practice is such that the reserved percentage for local underwriting is being traded-off to foreigners.
The federal government in 2006 rolled out the local content policy which exclusively reserved 45percent for local insurers in the oil and gas underwriting.  The euphoria that greeted the policy led to the launch of Nigeria’s first energy insurance consortium.
According to a top industry operator who prefers anonymity, “it is not entirely correct that local insurers collude to transfer their capacity outside the shores of Nigeria”.
However, he admitted that “due to the capital base of our local underwriters which places the highest capitalized insurers in Nigeria among the lowest in the world, it would take a longer time for local underwriters to fully have the capacity to underwrite all oil and gas insurance”.
He added that one of the reasons why the perceived sharp practices may continue is that oil and gas insurance is prized in dollars while local underwriting is done in the local currency.Investigations confirmed that local insurers connive with some officials of the National Petroleum Investment Management services (NAPIMS) to transfer business due to them to foreign insurers.  This is allegedly being encouraged by the huge commission which they earn in foreign currency.
At the launched of Nigeria’s first energy insurance consortium, one of the facilitators, Mr. Jonnie Wilcox raised public expectations when he stated that part of the objectives of the consortium was reduction of outflow, adding  that the consortium would add value to the local capacity and create certainty and access to funds security at the international market.  However, two years after, can these objectives be said to have been achieved?
It is unfortunate that rather than satisfying local consortium bidding, there are still leakages of over 40percent of the reserve to foreign insurers.
Mr. Ambrose Umosor is an insurance consultant.  In accessing the situation, he called on the National Insurance Commission (NAICOM) to discourage leakages while ensuring a deeper surveillance on the local insurers in order to nip these sharp practices in their buds.  He also called for caution in exercising the exceptional waivers right which NAICOM holds.
For instance, section 72 (1-4) of the Insurance Act 2003, stipulates that “the National Insurance Commission (NAICOM) can only grant approval for placement of any risk that cannot be placed locally except in very exceptional circumstances”  Umosor advised NAICOM to ensure that any waiver, necessitated by circumstances, must be opened to public scrutiny.
Expert’s opinion indicates that full implementation of the local content policy holds the key to Nigeria’s insurance growth.  This they hinged on the fact that it would empower the local insurers to dictate prizes at its own capacity.  In addition, it would enable them manage their own risks and reward issues as well as creating empowerment to the industry and all stakeholders.
According to the Managing Director of Trinity Consulting Group, Mr. Adulphus Nwaeze, while reviewing the performance of the policy so far “it is unethical for some operators to be discriminated against, particularly the brokers whose strategic position is crucial to the success of the policy.
He stated that while the policy provided for at least 45percent of underwriting in the oil and gas for local insurers, only less than 10 percent is still being handled by local insurers.
Nwaeze explained that it is unfortunate that some local companies still collude with foreigners to sell out our rightful share under flimsy excuses.
The energy expert called on operators to develop a strategic charter and operational framework, identify leakages for necessary amendments as well as injecting a true Nigerian content opportunities into the policy.
The issue of local content has attracted various comments over time.  According to the chairman, Nigerian Insurers Association (NIA) Mr. Wole Oshin, confronting local content policy goes beyond local capacity.  He said the inability of local underwriters to effectively markets themselves abroad is another challenge.
Earlier, the Managing Director of First Bank of Nigerian Insurance Brokers (FBNIB), Mr. Val Ujumah hinted that government’s desire of the local content policy may not be realized unless brokers are carried along.
He stated that brokers have been sidelined in the selection of firms for the oil and gas insurance while also faulting the bidding processes for participation.
Of significance, he said, is the fact that contrary to current practice, bidding for insurance should naturally be for brokers and not insurers. 
Mr. Ujumah explained that what is in practice now is that the bidding process is being controlled by one body which he identified as the National Petroleum Investment Management Services (NAPIMS).
He pointed out that on the contrary, it is the brokers who should be allowed to choose the insurers to work with and not for the insurers to choose the reinsure or broker as presently happening.
Experts’ opinion is that with an enlarged position reserved for local underwriters, our economic life would be boosted.  The policy is also expected to boost the insurance industry which has been in limbo over a long time until recently.
It would also contribute substantially to the nation’s gross domestic product (GDP) which is projected to have grown by more than 10 percent.
Interestingly, however, operators have risen to these challenges as they collaborate with industry regulator to straighten crooked lines.
According to Mr. Wole Oshin, Nigerian Insurers Association “has further been able to secure the Guidelines on Consortium Bidding with the assistance of the National Insurance Commission”.
In his statement at this year’s Annual General Meeting (AGM) he explained that the industry has also “presented a joint memorandum to the National Assembly during the public hearing on Nigerian Oil and Gas Industry Content Development Bill”
Can one then say that these challenges appear to be receiving attention?
If the various efforts being made by stakeholders are anything to go by, there could be light at the end of the tunnel.
For instance NIA, according to Oshin, has also had “several meetings with the Nigerian Council of Registered Insurance Brokers (NCRIB) for the purpose of bridging the communication gap and fostering mutual co-operation and understanding”.
Therefore, if the various provisions of the Insurance Act especially as it relates to key issues as Nigerian content on oil and gas are adhered to, the future of the industry would brighten further which would place the industry in its right position among top insurance companies in the world.
 

 


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NITDA DG Calls for Innovation-Led Economic Rebirth @ Kano Startup Weekend

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Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.

Speaking at the Kano Startup Weekend, Inuwa acknowledge Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provides a solid foundation for future growth.

He emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offers even greater opportunities through innovation and technology.

He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas are effectively deployed, they create value, solve societal challenges and generate sustainable economic growth. He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture place it in a strong position to take advantage of innovation-driven opportunities.

According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”

He noted that the state hosts numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development. However, he expressed concern that these institutions often operate in isolation from industry, with research outputs rarely translating into commercial or industrial applications.

He explained that innovation does not happen in silos and stressed the need for a strong, interconnected ecosystem that brings together academia, industry, startups, entrepreneurs and government.

According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converts ideas into market-ready solutions.

He further encouraged entrepreneurs to leverage technology to build businesses that can grow beyond local markets, explaining that innovation-driven enterprises have the power to scale rapidly, create jobs and position Kano competitively at both national and global levels. According to him, digital platforms and emerging technologies now make it easier for startups to reach wider markets and develop solutions that were previously unimaginable.

“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.

Highlighting NITDA’s ongoing interventions, the Director General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes. He cited the Digital Literacy for All (DL4ALL) initiative, which aims to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.

He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”

He explained that these programmes are key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity. According to him, empowering Nigerians with digital and technical skills is essential for building a resilient economy capable of competing in the global digital landscape.

“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth. At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.

Inuwa urged all stakeholders in Kano to work together to build a functional innovation ecosystem that can unlock the state’s vast potential. He expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano can reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.


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Sterling Bank Renewable Energy Colloquium Urges Stakeholders to Unlock Nigeria’s Clean Energy Potential

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Sterling Bank Limited on Monday convened stakeholders in the renewable energy industry to explore strategies for accelerating Nigeria’s transition to clean energy and boosting economic growth.

Sterling Bank Renewable Energy Colloquium Urges Stakeholders to Unlock Nigeria’s Clean Energy Potential

L-R: Mr. Ayo Ademilua, President, Renewable Energy Association of Nigeria; Dr. Jekwu Ozoemene, Group Executive, The Alternative Bank; Mr. Biodun Ogunleye, The Honourable Commissioner, Lagos State Ministry of Energy and Mineral Resources; Mr. Dele Faseemo, Group Executive, Coprporate and Investment Banking, Sterling Bank; Engr. Bem Samuel Anyangeuor, Representative, Honorable Minister of Power and Mr. Oluwaseyi Okunnuga, Group Head, Renewable Energy & Sustainability Finance, Sterling Bank at the just concluded Renewable Energy Colloquium held in Lagos recently.

The colloquium, themed “Beyond the Grid: Unlocking New Frontiers in Renewable Energy”, was held in Lagos and brought together policymakers, financiers, and industry leaders to deliberate on priority areas for action.

In his opening address, Managing Director and Chief Executive Officer of Sterling Bank, Mr. Abubakar Suleiman, represented by Mr. Dele Faseemo, Group Executive, Corporate and Investment Banking, said the bank would focus on regulation and financing to expand access to energy.

He noted that energy access remained critical to supporting economic growth and achieving Nigeria’s ambition of building a one trillion-dollar economy.

Delivering a keynote address titled “Scaling Electrification in Nigeria: The REA Impact”, Managing Director of the Rural Electrification Agency (REA), Dr. Abba Aliyu, represented by Mr. Abba Hayatudden, said Nigeria required about 26 billion dollars to bridge its energy deficit.

Aliyu explained that the energy transition strategy integrates grid, mini-grid and off-grid technologies to achieve universal, reliable and sustainable energy access while aligning with national development and climate goals.

Minister of Power, Mr. Adebayo Adelabu, represented by Engineer Samuel Ayangeaor, commended Sterling Bank for convening the dialogue.

He said renewable energy and rural electrification were central to the Federal Government’s Renewed Hope Agenda.

“The Ministry of Power has continued to expand electricity access to underserved communities to drive economic growth, foster industrial activity and create jobs across the nation,” Adelabu said.

Lagos State Commissioner for Energy and Mineral Resources, Mr. Biodun Ogunleye, highlighted the state’s efforts in renewable energy, including the ongoing two-gigawatt grid-scale solar project.

He described it as the most ambitious energy transformation ever undertaken by the state.

Chief Executive Officer of Sterling One Foundation, Mrs. Olapeju Ibekwe, urged participants to move beyond communiqués and act with intention to deliver meaningful impact.

The colloquium featured panel sessions on financing and scaling green energy solutions in Africa, among other discussions.


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Cellulant Taps Freddie Oduro to Lead Enterprise Payments Expansion in Ghana

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Mr. Freddie Oduro, New Country Manager for Ghana.
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Cellulant, a leading Pan-African payments company enabling seamless digital transactions across Africa, has appointed Mr. Freddie Oduro as its new Country Manager for Ghana.

Cellulant Taps Freddie Oduro to Lead Enterprise Payments Expansion in Ghana

Mr. Freddie Oduro, New Country Manager for Ghana.

Freddie’s appointment is a key step in Cellulant’s broader strategy to deepen its presence in priority markets by accelerating the acquisition of in-country enterprise businesses and strengthening its position as the payments partner of choice in Africa.

Freddie brings over a decade of commercial and strategic leadership experience in the telecommunications and financial services sectors, with expertise in  sales, business operations, and market expansion.

In his new role, he will drive merchant acquisition, strengthening partnerships, oversee collections and payout operations, while ensuring strong internal controls and regulatory compliance.

He joins Cellulant from Payaza and previously served as Sales Director at Cellulant, where he helped significantly expand the company’s footprint in Ghana.

Cellulant has been powering payments in Ghana for leading brands in sectors like e-commerce, utilities, oil and gas and retail, helping them offer their customers a wide range of secure digital payment options.

“We are happy to welcome Freddie back to the Cellulant family,” says Richard Gesimba, Chief Revenue Officer at Cellulant. “Ghana remains a critical market for us, with immense potential driven by rising digital payments adoption.

“As we sharpen our focus on in-country enterprise customers, Freddie’s leadership and industry insight make him the ideal person to steer our Ghana operations.”

The appointment comes at a transformative time for the company. Following a strategic shift between late 2023 and early 2024, focused on streamlining operations, doubling down on enterprise payments, and strengthening customer intimacy, Cellulant achieved profitability in 2024 and continues to build on this momentum.

The company now processes close to 4.5 million transactions daily for businesses across Africa, reinforcing its position as a fintech leader.

“I am honoured to return to Cellulant and lead the Ghana team at such a defining moment,” says Freddie, Country Manager for Cellulant Ghana. “Ghana presents a tremendous opportunity.

“We will ramp up our efforts to sign on more local merchants, strengthen our compliance and control frameworks, and introduce innovative solutions like Tingg Edupay, our automated school fee management solution that eliminates reconciliation delays by validating payments in real time and instantly updating student accounts.

“We will build on Cellulant’s strong foundation to deliver real value, reliability, and economic impact.”

Ghana’s digital payments sector continues to grow steadily, supported by increased mobile money usage and a progressive regulatory environment. Between January and October 2025, the value of mobile money transactions hit about GH¢ 3.6 trillion, up sharply from GH¢ 2.37 trillion in the same period of 2024.

Registered mobile money accounts now exceed 79 million, demonstrating strong consumer and business confidence in digital financial services and in turn creating many opportunities for payment innovation.

This leadership appointment underscores Cellulant’s commitment to building a resilient, high-performance organisation geared towards playing a pivotal role in the next era of Africa’s digital economy.

Looking ahead to 2026, Cellulant plans to further enhance the user experience on its payment platform, Tingg, and expand its  footprint across Ghana.


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