General News
Oil & Gas Underwriting, Experts Canvass for Level –Playing Ground
Notwithstanding the vast opportunities arising from insurance local content policy on oil and gas, operators have been tasked on providing a level playing field for all operators as well as blacking the leakages still going to foreigners, contrary to the provisions of the policy.
This position was canvassed by Adulphus Nwaeze, managing director of Trinity Consulting Group, while reviewing the performance of the policy so far.
According to him, “it is unethical for some operators to be discriminated against, particularly the brokers whose strategic position is crucial to the success of he 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 underwriters.
Nwaeze explained that it is unfortunate that some local companies still collude with foreigners to sell” out our rightful share under flimsy excuses.
He maintained that the preference for dollars over naira has been one of the tempting factors because foreign insurers are allegedly not enthusiastic about risks denominated in naira value.
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.
This position had earlier been dwelt on at a forum by Mr. Wole Oshin, chairman of the Nigerian Insures Association. According to him confronting local content policy goes beyond low capacity. He said the inability of local underwriters to effectively markets themselves abroad is another challenge.
The issue of effective local content policy has engaged experts’ attention in recent times. Earlier, Mr. Val Ujumah, managing director of First Bank of Nigerian Insurance Broker (FBNIB), said 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 to practice, bidding for insurance should naturally be for brokers and not insurers.
Mr. Ujumah said what is in practice now is that the bidding processed is being controlled by one body. He explained that the National Petroleum Investment Management Services (NAPIMS) appears to be the one controlling bidding.
He pointed out that it is the brokers who should be allowed to choose the insurers to work with and not for the insurers choose the re- insurers or broker as presently happening.
The local content policy on insurance was initiated by the Obasanjo’s administration. The policy raised the level of indigenous participation in oil and gas underwriting to 45percent. The policy which started in 2006 was first put at 10percent and is expected to rise to 70percent along the line.
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.
The policy development is also expected to contribute substantially to the nation’s gross domestic product (GDP) which is projected to grow by more than 10percent.
Central Securities Clearing System (CSCS) Plc has released its audited consolidated and separate financial statements for the year ended December 31, 2024, delivering a robust performance marked by double-digit growth in revenue and profitability.
Total revenue surged by 37 percent to N26.1 billion in 2024, up from N19 billion the previous year. Profit before tax also rose significantly, climbing 24 percent to N13.8 billion, compared to N11.2 billion in 2023.
The impressive results were largely driven by a 62 percent year-on-year increase in fee-based income, which rose to N11.9 billion from N7.3 billion, fuelled by heightened capital market activity. Ancillary services also contributed strongly, growing 27 percent from N8.1 billion in 2023 to N10.3 billion, buoyed by optimised service delivery and increased customer engagement.
CSCS maintained a strong balance sheet, with total assets rising 22 percent to N64.4 billion from N52.8 billion in the previous year. Key financial ratios also improved, with return on average equity at 30 percent, return on average assets at 20 percent, and earnings per share increasing to 239 kobo from 202 kobo in 2023.
Temi Popoola, chairman of the Board of CSCS, praised the performance amid a challenging economic climate.
“Despite the macroeconomic headwinds of 2024, we delivered strong results across key financial and operational indicators. Our strategy of consolidating our core offerings while expanding into new business areas enabled us to grow gross earnings by 37 percent, reaching N26.1 billion”.
Popoola added, “In light of this strong performance and our commitment to delivering long-term value to shareholders, the Board has proposed a dividend of N1.76 per share, amounting to a total payout of N8.8 billion.”
Haruna Jalo-Waziri, Managing Director and Chief Executive Officer of CSCS, emphasised the resilience and adaptability of CSCS’s business model. “Our 2024 performance highlights the sustainability of our revenue streams across both traditional and emerging segments.
“We continue to diversify into new areas and leverage technology to enhance scale and capacity in line with our strategic objectives. Amidst economic challenges, we grew operating income by 44 percent to N22.2 billion, while maintaining a cost-to-income ratio of 47 percent, reflecting our focus on operational efficiency.”
National Information Technology Development Agency (NITDA) has signed a Memorandum of Understanding (MoU) with SecDojo, SAS, a France-based cybersecurity training company, during the GITEX Africa 2025 event in Marrakech, Morocco.
L-R: Director General of NITDA, Kashifu Inuwa CCIE, and Chief Executive Officer of SecDojo, Mr. Younes Benzagmout at the signing ceremony, which took place during GITEX Africa 2025 in Marrakech, Morocco.
This collaboration aims to bolster Nigeria’s cybersecurity framework through targeted capacity-building initiatives.
The partnership will focus on establishing a Cybersecurity Academy, delivering advanced training programs, developing customized curricula, and fostering research and professional exchange.
NITDA’s Director General, Kashifu Inuwa, emphasized the importance of investing in human capital to drive Nigeria’s digital transformation and address the global shortage of cybersecurity professionals.
He highlighted Nigeria’s youthful population as a key asset in filling this talent gap.
Inuwa also advocated for integrating digital literacy and cybersecurity training into Nigeria’s formal education system, calling for collaboration between technology stakeholders and the Federal Ministry of Education.
He stressed the need for systemic integration of digital skills into academic curricula to prepare for the future.
SecDojo’s CEO, Younes Benzagmout, expressed enthusiasm for the partnership and reaffirmed the company’s commitment to supporting Nigeria’s cybersecurity professionals.
This collaboration marks a significant step toward securing Nigeria’s digital economy and enhancing its global competitiveness.
Recently, MBA Students of the Sloan Business School, Massachusetts Institute of Technology (MIT) visited MTN Nigeria’s office in Ikoyi, Lagos, for an interactive session on digital innovation and transformation.
The visit, a part of an academic exploration, provided the students with an opportunity to engage with executives within the ecosystem of the leading tech company, such as its Chief Digital Officer, A’isha Mumuni, and Chief Corporate Services and Sustainability Officer, Tobe Okigbo. who shared insights into the evolving digital landscape in Africa and beyond.
During her presentation, Mumuni emphasised: “The digital economy in Nigeria is evolving rapidly, but we must also acknowledge the hurdles, such as financial inclusion, language barriers in digital assistants, and internet penetration that we need to overcome to ensure that no one is left behind.”
One of the key topics discussed was financial inclusion, a critical issue in Nigeria where a significant portion of the population remains unbanked.
“We are still a largely cash-based economy. About 55% of Nigerians do not have access to financial services. The informal sector thrives on cash transactions, but as we’ve seen globally, access to different financial tools is key to economic growth,” Mumuni explained.
The students also engaged in discussions on the role of artificial intelligence (AI) in bridging the digital divide. A major concern raised was the limitation of AI-powered virtual assistants in understanding and responding to indigenous African languages.
Mumuni encouraged the postgraduates to think critically about Africa’s digital future and to consider how technological innovation could drive social and economic progress on the continent.
The visit provided MIT students with first-hand exposure to Africa’s digital transformation and potential areas of collaboration in bridging the digital divide.
This was the second courtesy visit to MTN’s headquarters from an educational institution in the past week. On March 12, 2024, 65 postgraduate students of the Pan-Atlantic University (PAU), visited three of the company’s locations in Ikoyi.
Recently, MBA Students of the Sloan Business School, Massachusetts Institute of Technology (MIT) visited MTN Nigeria’s office in Ikoyi, Lagos, for an interactive session on digital innovation and transformation.
The visit, a part of an academic exploration, provided the students with an opportunity to engage with executives within the ecosystem of the leading tech company, such as its Chief Digital Officer, A’isha Mumuni, and Chief Corporate Services and Sustainability Officer, Tobe Okigbo. who shared insights into the evolving digital landscape in Africa and beyond.
During her presentation, Mumuni emphasised: “The digital economy in Nigeria is evolving rapidly, but we must also acknowledge the hurdles, such as financial inclusion, language barriers in digital assistants, and internet penetration that we need to overcome to ensure that no one is left behind.”
One of the key topics discussed was financial inclusion, a critical issue in Nigeria where a significant portion of the population remains unbanked.
“We are still a largely cash-based economy. About 55% of Nigerians do not have access to financial services. The informal sector thrives on cash transactions, but as we’ve seen globally, access to different financial tools is key to economic growth,” Mumuni explained.
The students also engaged in discussions on the role of artificial intelligence (AI) in bridging the digital divide. A major concern raised was the limitation of AI-powered virtual assistants in understanding and responding to indigenous African languages.
Mumuni encouraged the postgraduates to think critically about Africa’s digital future and to consider how technological innovation could drive social and economic progress on the continent.
The visit provided MIT students with first-hand exposure to Africa’s digital transformation and potential areas of collaboration in bridging the digital divide.
This was the second courtesy visit to MTN’s headquarters from an educational institution in the past week. On March 12, 2024, 65 postgraduate students of the Pan-Atlantic University (PAU), visited three of the company’s locations in Ikoyi.
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