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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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Court Jails ‘Colonel’, ‘Major’ of Global Money-Laundering Ring

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A “colonel and a major” in a “worldwide highly sophisticated money-laundering syndicate on a breathtaking scale” have been jailed for nine years and 7 and half years respectively.

Court Jails ‘Colonel’, ‘Major’ of Global Money-Laundering Ring

Ejike Francis Ogbuefi (42) of Clonard Road, Crumlin, Dublin 12, and Steven Silvester (32) of the Paddocks, Morristown, Newbridge, Co Kildare, were both convicted of directing the activities of a criminal organisation following a trial at Dublin Circuit Criminal Court in February.

Ogbuefi was also convicted of 32 counts of money laundering and seven of conspiracy to launder money.

The jury also convicted Silvester of five counts of money laundering, two of attempted money laundering, four of conspiracy to launder money and one of using a false instrument.

Both defendants had no previous convictions here or in another jurisdiction.

The court heard that both men were assessed to be above mule herders and money mules in the operation, with Ogbuefi having a more active role.

During the sentence hearing, Judge Martin Nolan suggested to the investigating garda that the men were a “colonel and a major”, which Det Garda Steven Kelly agreed with.

Imposing sentence on Friday, the judge said both men were involved in the offending and played certain roles.

He noted that the scheme’s ambition was to “get accounts to launder illicit monies” which were “undoubtedly the product of criminal behaviour” and that third parties unknown to the court suffered as a result.

“Both men were reasonably experienced in how the banking system works” and aware of its weaknesses which they tested, sometimes successfully, the judge said.

The judge said he had considered the mitigation and there was a “good chance” the men would not reoffend in future, but that the court could not be certain.

The judge noted that money laundering is a “serious problem” and the court often dealt with cases of people who provided their bank details to be used in these schemes.

“These bank accounts are absolutely necessary for all fraud, because monies have to come to earth somewhere,“ the judge said, noting that the defendants’ main role was to procure bank accounts so that money could be sent to others who profited.

He imposed on Ogbuefi a sentence of nine years and imposed a 7½ year sentence on Silvester, whom he considered to be at a lower level.

Kelly told Seoirse Ó Dúnlaing, prosecuting, that the Garda investigation looked at various bank accounts, transactions and online communications.

Evidence suggested both men were receiving requests, often from phone numbers in Nigeria, to launder money from different types of frauds.

Kelly agreed with Conor Devally, defending Ogbuefi, that his client is from Nigeria and his family is law-abiding.

Garda Kelly agreed with Maurice Coffey, defending Silvester, that his client became involved in this criminality some time after his arrival in Ireland in 2015 and had no record of shopping in high-end stores or trappings of wealth.

It was also accepted that Ogbuefi appeared to have a more active role than Silvester.

Defence counsel told the court their clients accepted the verdicts of the jury and were remorseful.

Testimonials were handed to the court on behalf of both men.

Mr Devally asked the court to view Ogbuefi as being “appointed to a position of local authority in a wider organisation”.

Mr Coffey said Silvester was under pressure and desperate at the time.

He asked the court to consider that his client did not come to Ireland to get involved in this offending, but fell into temptation at a time of vulnerability.


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Activist Warns against Rising Junk Food Culture in Nigeria

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Nnimmo Bassey, environmental activist and food sovereignty advocate has raised concerns over the growing influence of junk food culture and global food politics on Nigeria’s food systems.

Activist Warns against Rising Junk Food Culture in Nigeria

Nnimmo Bassey, environmental activist

Bassey warned that the increasing consumption of highly processed foods poses serious risks to public health, cultural identity, and national food security.

He made these remarks on Thursday while speaking at the Sustain-Ability Academy lecture on Food, Power and the  Politics of Hunger, organised by the Health of Mother Earth Foundation in collaboration with the University of Port Harcourt.

“Food is not just for sustenance; it is central to our identity, our relationships, and our traditions,” he said.

He explained that traditional diets reflect the diversity of Nigeria’s ethnic groups and have historically fostered unity within communities.

Bassey traced the evolution of food systems in Nigeria, highlighting how colonialism, commerce, and conflict have reshaped local diets.

He referenced the Nigerian Civil War as a turning point when food was weaponized, leading to widespread malnutrition and long-term dietary changes, particularly in the Eastern region.

The activist criticized the rapid rise of fast food consumption, describing it as a product of modern society’s demand for instant gratification.

According to him, fast food outlets use sensory stimulation, bright lighting, loud music, and constant visual entertainment to distract consumers from questioning the nutritional value of what they eat.

“People leave with more than just a full stomach, they carry heavy metals, artificial colourings, and harmful substances in their bodies,” he said.

Bassey also expressed alarm over the increasing presence of genetically modified organisms (GMOs) in Nigeria’s food system.

He argued that such products, often introduced without sufficient scrutiny, could have long-term health and environmental consequences.

He further cautioned against the role of political leaders in normalizing unhealthy consumption patterns.

“When top politicians publicly consume junk food and sugary drinks, they send a dangerous message that such habits are acceptable or even desirable,” he said.

At the heart of his argument is what he described as “food colonialism” a system driven by global power dynamics, where economic pressures, debt, and cultural influence shape local food choices to benefit multinational corporations at the expense of local farmers.

Bassey called for a “decolonization” of food systems across Africa, urging governments and citizens to prioritize indigenous foods, protect seed-sharing traditions, and resist policies that undermine local agricultural practices.

He also challenged prevailing narratives around hunger, questioning whether food insecurity is truly a result of low productivity.

“In countries like Nigeria, nearly half of all food produced goes to waste. The issue is not just production, but distribution, policy, and power,” he explained.

The session concluded with a call for urgent reforms to ensure fairness, resilience, and sustainability in food systems, with a focus on supporting smallholder farmers and addressing the structural causes of hunger.


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Gartner Forecasts Surge in AI-powered Public Services

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At least 80% of governments will deploy artificial intelligence (AI) agents to automate routine decision-making, enhancing efficiency and service delivery by 2028.

This is according to market research firm Gartner, which highlights a growing shift toward digital governance, where AI-powered systems will increasingly handle repetitive administrative tasks, such as processing applications, managing public records and responding to citizen queries.

“Government chief information officers are under growing pressure to embed AI into decision-making capabilities rapidly and responsibly,” says Daniel Nieto, senior director analyst at Gartner. “The rise of multimodal AI, alongside conversational and agentic systems, has expanded what public organisations can automate, understand and anticipate.”

The Gartner report comes as South Africa is moving to embed AI into public administration, with early use cases emerging across service delivery, disaster response and internal operations, even as full-scale deployment of autonomous “AI agents” remains some years away.

The country’s National AI Policy Framework, released in 2024, has set the direction for adoption, with a comprehensive national policy expected by 2027.

Implementation is likely to follow from 2027 onwards, positioning the country for a more structured and regulated rollout of advanced AI systems across departments.

While South Africa has yet to deploy AI agents at scale, government and research initiatives indicate that agent-like systems are already taking shape.

Global use cases

Globally, governments are rapidly deploying AI agents to automate public services and internal operations, shifting from simple chatbots to systems that can execute tasks and coordinate workflows.

In the US, federal and city agencies are using AI agents to handle citizen queries, draft documents and manage call centres, while in China, autonomous systems are being integrated into administrative processes and urban management.

European governments are piloting AI-driven tools in policing and public service delivery, and in emerging markets, agentic platforms are being used to improve disaster response, financial inclusion and digital identity systems.

However, Gartner notes that fragmentation is one of the most persistent barriers to AI value in government.

According to a Gartner survey of 138 respondents from government organisations worldwide between July and September 2025, 41% of respondents cited siloed strategies and 31% cited legacy systems as key challenges to adopting and implementing digital solutions.

“Technology modernisation alone has not resolved these issues,” says Nieto.

The market analyst firm says as AI transitions from experimentation to being deeply embedded in decision-making, governance approaches must also evolve. It points out that traditionally, AI governance has centred on managing models, data and algorithms.

However, it states that decision intelligence (DI) shifts this focus towards the governance of decisions themselves; for example, on how they are designed, executed, monitored and audited. This shift in governance is especially critical in government, where public legitimacy relies on transparency and fairness, the firm explains.

Measurable impact

The Gartner survey found that 39% of respondents cited improved service and citizen satisfaction as primary reasons to invest in building citizen trust.

The firm notes that DI offers a structural foundation for operationalising this trust by making decision pathways explicit and auditable.

“By governing decisions, rather than just isolated AI components, governments can better balance automation with human judgement, particularly in high-stakes or rights-impacting contexts,” says Nieto. “Regulated industries and governments cannot rely on opaque ‘black box’ systems for consequential decisions. DI elevates explainability from a technical requirement to a governance imperative.”

Because of the need for transparency in decision-making, Gartner predicts that by 2029, 70% of government agencies will require explainable AI (XAI) and human-in-the-loop (HITL) mechanisms for all automated decisions that impact citizen service delivery.

Gartner explains that XAI and HITL designs are foundational to public-sector DI. These mechanisms ensure decision logic can be inspected, explained and challenged. Because of XAI and HITL, humans also retain authority over exceptions, appeals and high-risk cases, and accountability is preserved even as automation increases, it adds.

While efficiency remains important, Gartner says citizen trust in government’s ability to provide effective services is becoming a key driver of digital transformation. Fifty percent of government respondents cited improved citizen experience as one of their top three priorities.

“As AI and decision intelligence increasingly automate and streamline service delivery, the traditional notion of ‘citizen experience’ evolves,” says Nieto.

“When citizens receive what they need from the government automatically, direct interactions may decrease, making trust in the system’s reliability, fairness and transparency even more critical. Because trust is so imperative in these situations, the predictive capacity to anticipate potential needs could reshape how government digital services are delivered.”

 


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