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.
General News
AFC Proffers Action Plans for Nigeria, Africa to Unlock $4trn from Investors to Grow Economy
Nigeria and other African nations can tap up to $4 trillion in capital from institutional investors, an amount that could be used to fund the continent’s infrastructural gaps and engineer much-needed economic growth, according to the Africa Finance Corporation.
While there are as investable domestic capital across banking assets, institutional funds, and reserves, the multilateral lender revealed on Thursday that funds are still being channeled into “low-risk and short-term instruments instead of being channelled into the real economy.”
“Redirecting more savings into the real economy is critical,” said Rita Babihuga-Nsanze, AFC chief economist and director of strategy, speaking during the AFC’s 2025 State of Africa’s Infrastructure briefing. “Africa must build its intermediation infrastructure to match its development needs.”
Nigeria is however demonstrating how Africa can unlock domestic capital for infrastructure, with its pension fund investments in the sector rising from just $6 million in 2015 to more than $155 million in less than a decade.
This milestone, driven largely by reforms and credit enhancement mechanisms like InfraCredit, underscores the growing role of pensions in financing long-term development on the continent.
Data from the Africa Finance Corporation (AFC) shows that as of February 2025, Nigeria’s infrastructure-related pension assets had grown to N250.87 billion, representing 1 percent of total assets under management (AUM).
This is a sharp increase from the N1.19 billion recorded in 2015, which stood at just 0.02 percent of AUM.
A turning point came in 2017, with the launch of InfraCredit and Nigeria’s maiden corporate infrastructure bond. The credit guarantee initiative helped de-risk infrastructure projects, attracting conservative institutional investors like pension fund administrators (PFAs).
Chinua Azubike, managing director of InfraCredit said the credit-guarantee institution has helped facilitated bonds to build critical infrastructure, citing the bond raised for the construction of the Lagos Free Zone.
Azubike noted that while perception of risks persists, the company has “zero default rate” despite being involved in well over 12 sectors.
But while Nigeria’s growth is notable, pension allocations across Africa remain largely skewed toward low-risk, short-term instruments such as government securities and money market funds.
In countries like Ghana and Uganda, over 75 percent of pension assets are held in government bonds. Nigeria itself still holds 63 percent of its pension assets in these instruments.
This conservative stance, analysts say, reflects both regulatory caution and the underdevelopment of local capital markets.
In contrast, economies like India and OECD countries show a more balanced allocation, with significant exposure to corporate debt, real estate, and alternative investments. For example, OECD pension funds allocate nearly 20 percent to alternatives, according to AFC data.
To replicate Nigeria’s model, experts are calling for a coordinated effort to deepen capital markets, build risk assessment capacity, and create vehicles that can intermediate long-term finance effectively.
Beyond returns, pension investments in infrastructure have the added benefit of creating jobs, boosting productivity, and supporting economic resilience, critical needs in a post-pandemic, climate-vulnerable Africa.
Association of Set-Top Box Manufacturers of Nigeria (STBMAN) has accused the National Broadcasting Commission (NBC) of sidelining indigenous manufacturers and flouting a subsisting court order in its push to launch a new satellite-driven Digital Switch Over (DSO) scheme, tagged ‘The Big Picture’.
Charles Ebuebu, director-general, NBC
The group is calling on President Bola Tinubu to urgently intervene.
STBMAN, in a statement issued by Sir Godfrey Ohuabunwa, its chairman, described the NBC’s approach as “incoherent and unfair”, alleging a consistent pattern of disregard for existing agreements and stakeholders.
“It is becoming routine for the Commission to embark on a course without the slightest consideration to agreements and for key stakeholders in the DSO ecosystem,” the group stated.
The manufacturers expressed concern over NBC’s plan to import five million hybrid set-top boxes from China, despite a presidential executive order promoting local content in procurement.
They argue this move contradicts the “Nigeria First Policy” and undermines years of local investment.
“NBC should therefore be a promoter of economic activities and not a destroyer of ideas and investments,” STBMAN said, highlighting that its members still hold unsold boxes manufactured to NBC’s original specifications.
READ THE FULL STATEMENT BELOW:
PRESS RELEASE BY THE ASSOCIATION OF SET TOP BOX MANUFACTURERS OF NIGERIA, ON THE JOINT PRESS RELEASE BY THE DIRECTORS GENERAL OF THE NATIONAL BROADCASTING COMMISSION (NBC) AND NIGCOMSAT ON THE UNVEILING OF SATELLITE DRIVEN DIGITAL SWITCH OVER (DSO) TAGGED ‘‘THE BIG PICTURE’’.
The Association of Set Top Box Manufacturers of Nigeria (STBMAN)is once again compelled to issue a statement on the very incoherent and unfair practices being pursued by the National Broadcasting Commission (NBC)in its implementation of the FGN’s policy on the migration from analogue to digital broadcasting. Regrettably, it is becoming routine for the Commission to embark on a course without the slightest consideration to agreements and for key stakeholders in the DSO ecosystem.
The public is invited to note that STBMAN is a body of technology driven businesses and is not averse to the introduction and use of new technologies.
Similarly, it should be noted that the Association is not alluding to any inference that it should be the ultimate determiner of how the project is implanted.
For any keen follower of the DSO since its conception by the DigiTeam, it is not far- fetched to recall its decision on the adoption of the Digital Terrestrial Television (DTT) option as against the DTH on grounds of the cost that will be difficult to bear by the larger part of the TV viewing population.
Secondly, as at today the Federal Government of Nigeria has spent close to over N60Billion on DSO program, excluding Millions of Dollars spent by Broadcast Signal Distributors, local DTT factories and other stakeholders who have deployed DTT Infrastructure. This is not minding the over 10 million Poor Television Households that will be impacted by mindless action of hybrid box.
As we are not averse to any change of any government policy, it is on record that STBMAN at various times have encouraged NBC to partner with NIGCOMSAT to provide the necessary signal transmission/ coverage to ameliorate the heavy cost that was being paid to foreign satellite distribution/ carriers but the NBC outrightly refused to consider this.
It is heart-warming to note finally that NIGCOMSAT is now the latest and best to provide signal coverage.
Curiously, the Press Release stated that local manufacturers would be engaged to produce hybrid compliant reception devices yearly, yet there has been no form of engagement with the 13 licensed STB manufacturers who have committed huge financial cost in the manufacture of DTT boxes specifically ordered and made to specifications provided by the NBC/ Digiteam.
It is imperative for the public to note that the STB manufacturers have toiled and sacrificed for the success of the DSO but at each turn, there appears to be deliberate and calculated move to scuttle their efforts and investments.
For almost 10 years, members of STBMAN have been left with scores of boxes in their warehouses without being able to sell because of NBC’s inability to deliver on its obligations and contractual agreements.
The least that any well-meaning governmental body that cares for the growth of its economy should have done, would have been an engagement with the existing licensed manufacturers to work out an acceptable arrangement, considering the financial investments as well as the changes in technology that have become necessary to undertake.
The public is invited to note further that it was on grounds of this and NBC’s attempt to undermine the agreement and the exclusivity granted the pioneer manufacturers that the Association took out a Writ of Summons in Suit No: FCT/HC/GAR/CV/442/2024 to protect its interest by seeking Court intervention to stop any attempt at licensing new manufacturers of STBs. It is *instructive to emphasis here that on the 11th day of September 2024, the High Court of the Federal Capital Territory, sitting in Abuja made interim orders restraining NBC from taking any further step in relation to the reliefs being sought by the Claimants.
Notwithstanding the fact that NBC is not only seized of the pendency of the case/ action but has joined issues with the Claimants, it has chosen the path of contempt to short circuit the ends of justice.
An order of court, whether valid or not must be obeyed if it is subsisting by all no matter how lowly or lightly placed in society until it is set aside. This is what the rule of law is all about.
As if NBC is running a different Government, in the press release, they intend to import 5,000,000 Hybrid/DTH Set Top Boxes from China, in total disregard of the Presidential Executive Order “The Nigeria First Policy’ which makes it mandatory, that Nigeria comes first in all procurement processes.
No foreign goods or devices that are already produced locally will be procured without a clear justified reason. Accordingly, the policy reflects the vision of President Ahmed Tinubu GCFR in industrializing Nigeria, shielding the economy from global shocks and building sustainable local capacity. NBC should therefore be a promoter of economic activities and not a destroyer of ideas and investments.
In the light of the foregoing, we call on Mr. President, Alh. Bola A. Tinubu GCFR to urgently wage in and stop this rather dangerous trend sought to be perpetrated by the NBC leadership and its advisers.
Thank you.
For: ASSOCIATION OF LICENCED SET TOP BOX MANUFACTURERS OF NIGERIA. (STBMAN)
SIR GODFREY N. OHUABUNWA
CHAIRMAN
Jumia, Africa’s e-commerce platform, is celebrating 13 years of transforming the way Nigerians shop. Since its launch in 2012, Jumia has evolved into more than just an online shopping destination. It has become a catalyst for economic growth, digital inclusion, and everyday convenience for millions of Nigerians.
From small business owners and rural consumers, Jumia has played a key role in shaping a more inclusive digital marketplace. Over the past decade, the platform has helped hundreds of local and international brands reach customers across the country, while also supporting thousands of sellers with tools, training, and access to logistics and digital payments.
To commemorate this milestone, Jumia is launching the 2025 Anniversary Campaign under the theme “Enjoyment Overload”, running from June 2 to June 22. While the campaign will feature attractive deals from Nivea, Xiaomi, Itel, Diageo, Ecoflow, Skyrun, Oraimo, Adidas, Reebok, Unilever, Reckitt, and more, it also reflects a deeper celebration of the brand’s enduring impact.
“We are proud of the journey so far, not just in terms of business growth, but in the real-life stories of empowerment and access that Jumia has made possible. With this anniversary campaign, we’re pulling out all the stops to create a celebration that rewards loyalty, excites new users, and showcases the very best of what e-commerce can offer.
This is our way of saying thank you to the millions of Nigerians who have grown with us, challenged us, and inspired us every step of the way,” said Sunil Natraj, CEO, Jumia Nigeria.
“Beiersdorf Nigeria owner of Nivea Brand, is proud to partner with Jumia as the Platinum Sponsor for the 2025 Jumia Anniversary Celebration. This three-week event allows us to showcase our commitment to skincare innovation and reward consumers nationwide.
“NIVEA will highlight key innovations, including our new NIVEA SUNSCREEN – UV Face, re-launched Deep Maxx Tech Body Lotion, and Radiant & Beauty Even Glow, specially designed to meet the unique skincare needs of African skin.
“Through this partnership, we’re bringing trusted skincare solutions to more Nigerians, with exclusive discounts and a 4.5 million Naira grand prize for the top shoppers,” said Dele Adeyole, Country Manager, Beiersdorf Nivea Consumer Product Limited.
Shoppers can look forward to daily flash deals, brand days, games, treasure hunt, and exciting giveaways from Jumia and partner brands.
As Nigeria’s digital economy continues to evolve, Jumia remains committed to simplifying daily life through technology, innovation, and a customer-first approach.
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