General News
Local Content on Oil & Gas Underwriting; Issues and Challenges
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.
Dr. Aminu Maida, executive vice chairman and chief executive officer (EVC/CEO), Nigerian Communications Commission (NCC), has has been confirmed as a Special Guest of Honour at this year’s Africa Beacon of ICT Lectures and Awards.
Dr. Aminu Maida, executive vice chairman and chief executive officer, NCC
Africa Beacon of ICT Lectures and Awards, is widely regarded as the most prestigious annual event available in the ICT industry in Nigeria.
The event according Ken Nwogbo, editor-in-chief of Nigeria Communications Week,“is digital transformation edition” will hold on Saturday, May 30, 2026 at the Four Points by Sheraton, Lagos.
Africa’s BoICT Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.
It will also to recognise and celebrate organisations and individuals in the ICT and banking industries that have impacted in digital transformation of the economy.
Nwogbo said that Dr. Maida, oversees the regulation, development, and strategic direction of the Nigerian telecommunications industry.
His administration at the NCC, actively drives initiatives to improve telecom consumer experience, enhance infrastructure, and foster collaborations (such as with the Central Bank of Nigeria) to protect citizens from financial fraud
He holds a PhD in Electrical & Electronic Engineering from the University of Bath, UK.
Prior to joining the NCC, he served as the Executive Director, Technology and Operations at the Nigeria Inter-Bank Settlement System Plc (NIBSS).
At NIBSS, Dr. Maida was responsible for spearheading the technical and operational standardization of all devices deployed in the financial system in Nigeria for interoperability.
He led a dynamic team that ensured that all terminals used in the e-payment industry and all devices deployed in Nigeria would accept all cards issued by banks and other licensed card schemes without discrimination.
Prior to his appointment at NIBSS, Maida was the Chief Technical Officer (CTO) at the Nigerian-based FinTech Arca Payments Network and Senior Manager at Cisco Systems, United Kingdom.
As a seasoned technical professional with over 15 years of multi-functional and international experience in FinTech & Telecoms & Enterprise Technology, Dr. Maida between 2010 and 2014, worked as a Network Design Consultant at EE, part of BT Group, and one of the largest mobile communications companies in the UK.
He was also at some point (2006-2010) a System Engineer at Ubiquisys, a leading company in intelligent 3G and LTE small cells, which is now part of Cisco.
Dr. Maida will be joining will join top dignitaries who have graced the event in the past including: Dr. Ernest Ndukwe, former executive vice-chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.
Others are: Chris Uwaje, chairman, Mobile Software Solutions Ltd; Uche Orji, former managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodun Omoniyi, Managing Director/CEO, VDT Communications; and John Obaro, CEO and founder of Systemspecs; Dr. Isa Pantanmi, former DG, NITDA; Dr. Obadare Peter Adewale, co-founder and COO, Digital Encode Limited; among others.
The highpoint of the BoICT Lecture will be the conferment of awards to companies and individuals for their significant contributions to the growth of technology in Nigeria and indeed Africa.
The event is a five-star event; easily Nigeria’s ICT Oscars.
General News
Pantami, Ex Minister of Communication Withdraws from Gombe APC Governorship Primaries over Alleged Electoral Violations
Professor Isa Ali Ibrahim Pantami, former minister of Communications and Digital Economy, has withdrawn from the All Progressives Congress (APC) governorship primary election in Gombe State, citing alleged violations of the Electoral Act 2026 and failure by party officials to provide conditions necessary for a credible primary process.
Professor Isa Ali Ibrahim Pantami
Pantami announced his withdrawal in a statement issued by Barrister Ibrahim M. Attahir on behalf of the Pantamiyya Movement.
The former minister said his decision followed extensive consultations with stakeholders and careful assessment of developments surrounding the APC direct primaries in the state.
According to the statement, Pantami participated fully in the governorship process out of loyalty to the APC after accepting appeals from party leaders, youths, women groups and other stakeholders urging him to contest for the state’s top seat.
The statement noted that Pantami complied with all party requirements and procedures and was the only governorship aspirant represented at the Peace Accord meeting organised by the Nigeria Police Force, Gombe State Command, on May 14, 2026.
It added that his representative was also the only aspirant’s delegate who signed the peace accord during the event.
Despite this, the Pantamiyya Movement alleged that the APC leadership repeatedly failed to provide critical information relating to the conduct of the direct primaries.
According to the statement, several letters sent by Pantami’s solicitors to relevant organs of the party seeking clarification on procedures, accreditation, collation centres and other operational details were neither acknowledged nor responded to.
“In a democracy, the law must guide the process. Non-compliance with the Electoral Act 2026 and the party guidelines renders the exercise unsafe and illegitimate,” the statement said.
The movement further alleged that no actual election took place during the recent National Assembly direct primaries conducted in Gombe State on May 16 and 18, 2026, claiming that many aspirants were not informed about voting venues, accreditation procedures or collation arrangements before results were announced.
The statement maintained that Pantami’s political strength lies in his grassroots support base, particularly among youths and women, but alleged that ordinary party members were sidelined in the recent primaries.
It also claimed that despite President Bola Ahmed Tinubu’s insistence on credible and transparent direct primaries, the directives were allegedly not implemented in Gombe State.
“Prof. Pantami had requested details on the time and place for accreditation of agents and observers, the procedures for accreditation, voting and collation, and the location of collation centres. This information should have been provided to all aspirants without being solicited. As of this moment, nothing has been provided,” the statement added.
Pantami expressed appreciation to supporters, especially youths who reportedly raised funds through crowdfunding to purchase his expression of interest and nomination forms.
The movement disclosed that donations from supporters ranged between ₦5,000 and ₦4 million, with contributors publicly sharing receipts online.
The former minister also thanked women groups, coordinators at ward and local government levels, elders, campaign officials and members of the Campaign Coordinating Committee for their support and loyalty throughout the process.
He urged his supporters to remain calm, peaceful and law-abiding, stressing that democracy must be anchored on the rule of law, peace and security.
The statement added that the Pantamiyya Movement would communicate its next political direction and future plans to supporters and followers across Gombe State and the country in due course.
“All followers, admirers and supporters of Malam Pantami are to remain united for the next alignment and realignment in the political space,” the statement said.
Pantami’s withdrawal is expected to significantly reshape political calculations within the APC ahead of the 2027 governorship election in Gombe State, given his strong support base among youths and grassroots mobilisers.
The U.S. Trade and Development Agency (USTDA) has concluded arrangements to deploy U.S.-made wireless infrastructure in Nigeria and other three West African countries.
Donald Trump …..credit..foxbusiness
According to a statement made available by the U.S Embassy, Abuja, U.STDA, disclosed the funding for a feasibility study to install approximately 1,500 turnkey mobile communications base stations for deployment of wireless technology across Benin, Côte d’Ivoire, Ghana and Nigeria.
The deployment of American-made mobile base stations, it further stated will address West Africa’s urban-rural connectivity gap and provide millions of West Africans with faster, more reliable mobile access, aimed at supporting economic activity in areas.
The statement reads: “USTDA announced funding for a feasibility study to install approximately 1,500 turnkey mobile communications base stations from Massachusetts-based company Vanu Inc. (Vanu), across Benin, Côte d’Ivoire, Ghana and Nigeria.
“USTDA is bringing private sector solutions to unlock widespread, affordable, trusted internet access in off-grid communities across West Africa,” said Thomas R. Hardy, USTDA’s deputy director.
“By helping American companies compete in these critical markets, we are offering an alternative to insecure infrastructure while creating export opportunities that make America more prosperous.”
“USTDA’s assistance will fund the study for Vanu Côte d’Ivoire, which has selected Georgia-based Vernonburg Group LLC to provide U.S. expertise to assess the commercial viability of large-scale deployment and help mobilize financing for implementation.
The study will evaluate existing network infrastructure, analyze market conditions across all four countries, assess legal and regulatory frameworks, and develop a comprehensive financing plan.
The project will generate substantial opportunities to deploy trusted U.S. wireless solutions, network management systems, and other digital infrastructure throughout the project’s implementation.
“The deployment of American-made mobile base stations will address West Africa’s urban-rural connectivity gap and provide millions of West Africans with faster, more reliable mobile access, supporting economic activity in areas that have historically been offline or limited to outdated 2G and 3G networks.
Andrew Beard, CEO of Vanu Inc., said: “Vanu is proud to partner with USTDA to demonstrate how our systems enable mobile network operators in West Africa to deliver broadband Internet and voice services in some of the most economically and operationally challenging markets and prove that connectivity in these markets can be profitable, sustainable and scalable. Building on our pioneering world-first Federal Communications Commission certification of a software radio product, Vanu has developed an ecosystem of American companies to deliver cost-effective systems based on open interfaces and architectures. The USTDA study will help catalyze new investment, expand U.S. exports, and accelerate deployment of trusted, secure digital infrastructure to connect billions of people worldwide.”
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