• Home
  • National News
  • Education
  • Health
  • Crime
  • Opinions
  • Politics
  • World News
  • Niger State Governor
  • Sports
  • Business
Nigerian Daily Post
  • Home
  • National News
  • Education
  • Health
  • Crime
  • Opinions
  • Politics
  • World News
  • Niger State Governor
  • Sports
  • Business
No Result
View All Result
  • Home
  • National News
  • Education
  • Health
  • Crime
  • Opinions
  • Politics
  • World News
  • Niger State Governor
  • Sports
  • Business
No Result
View All Result
Nigerian Daily Post
No Result
View All Result

FG Loses N44bn as Insurers Breach Local Content Law

admin by admin
April 4, 2023
in National News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter
For advert placement, News publication, Event coverage and Promotions, call +2349012892630 or email us info@nigeriadailypost.com.ng

FG Loses N44bn as Insurers Breach Local Content Law

Nigeria’s local insurance firms lost about N81.8 billion to their foreign counterpart instead of N37.8 billion as provided by the relevant local content law on oil and gas insurance in 2022.

The law stipulated that 70 percent of total premium on the oil and gas sector insurance should be undertaken by the local insurance firms while their foreign counterparts take 30 percent.

Findings from data at the National Insurance Commission, NAICOM indicated that while the local firms actual underwriting was 35 percent, which translated to N43.9 billion out of the total N125.7 billion premium, their foreign counterparts took 65 percent which translated to N81.8 billion.

Details of the 2022 oil and gas insurance shows increasing disproportionate underwriting in favour of foreign insurance firms quarter-on-quarter.

In the first quarter of 2022, Q1’22, oil and gas premium stood at N50.2 billion, with a total of N25.2 billion or about 50 percent transferred to foreign companies.

In Q2’22, oil and gas premium declined to N21 billion, but ceding to foreign counterparts rose to 71.4 percent or N15 billion.

In the Q3 premium rose to N24.7 billion, and ceding to foreign firms rose to 72.5 percent amounting to N17.9 billion.

Decrying the development, NAICOM stated that the oil and gas portfolio lamentably remained a challenging angle in the market owing to its nature of enormous capital and professional requirements.

It will be recalled that the federal government had set a target of 70 per cent local content for underwriting of oil and gas risks, implying that 70 percent of all insurance risks associated with oil and gas business including prospecting, exploration, drilling, constructions, shipping, distribution, marketing, and transportation are to be insured in Nigeria with registered Nigerian insurance companies.

However, energy risks are still substantially insured abroad due to low capacity in the local insurance industry.

Speaking on the situation, Deputy Managing Director, Technical of Anchor Insurance, Mr. Adebisi Ikuomola, said that in response to the high level of premium export emanating largely from oil and gas related risks, Nigeria use laws and regulations to drive local participation through graduated domestication of these insurances. However, there is still a long way to go.

He stated: “Despite the local content laws and regulations established in Nigeria, insurance companies are yet to fully take advantage of the opportunity to effectively position themselves as major players capable of leading foreign firms in the underwriting of oil and gas business.

“The mandates to companies in the upstream petroleum sector to cede their insurance business to local insurers, is in line with efforts to maximise the participation of local insurance companies in the oil and gas sector.”

Visited 1 times, 1 visit(s) today

For advert placement, News publication, Event coverage and Promotions, call +2349012892630 or email us info@nigeriadailypost.com.ng
Previous Post

Bandits invade Kaduna school, abduct scores of students

Next Post

DHQ Clarifies Movement of Military Fighting Trucks in Nigeria

admin

admin

Related Posts

Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 
National News

Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

July 8, 2025
NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 
National News

NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 

July 8, 2025
NDLEA Seizes AK-47, Substantial Drug Haul in Coordinated Operations Across Nigeria
National News

NDLEA Recovers $17.7 Million in Travelers’ Cheques Hidden in Children’s Books. 

July 7, 2025
Tragic Incident in Bayelsa: Father Allegedly Kills Children Following Pastor’s Prophecy. 
National News

Tragic Incident in Bayelsa: Father Allegedly Kills Children Following Pastor’s Prophecy. 

July 7, 2025
Breaking News: Olubadan of Ibadanland, Oba Owolabi Olakulehin, Passes Away at 90.
National News

Breaking News: Olubadan of Ibadanland, Oba Owolabi Olakulehin, Passes Away at 90.

July 7, 2025
The Politics of Rented Crowds: From Grassroots Conviction to Performative Politics
National News

The Politics of Rented Crowds: From Grassroots Conviction to Performative Politics

July 7, 2025
Next Post

DHQ Clarifies Movement of Military Fighting Trucks in Nigeria

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 139 Followers
  • 205k Subscribers
  • 23.9k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
Minimum wage : Gov. Bago directs full  implementation using Fed Govt. template. 

Minimum wage : Gov. Bago directs full  implementation using Fed Govt. template. 

November 3, 2024
Niger State Govt. commences payment of gratuities to Retirees.

Niger State Govt. commences payment of gratuities to Retirees.

May 22, 2025
Gov. Bago Sympathizes with Nigeria Army,reassures to curb insecurity in the State. 

Farmer Governor Umar Bago to increase workers salary by 35 percent – insider source

December 22, 2024
Four hundred level Student of IBBUL brutally attacked by her Ex-boy friend,damaged her eyes.

Four hundred level Student of IBBUL brutally attacked by her Ex-boy friend,damaged her eyes.

February 23, 2025

FAAC SHARES N 1,149.816 TRILLION JANUARY 2024 REVENUE TO FG, STATES AND LGCS

2

THE PRESIDENT DOKO PROGRESSIVE FORUM (DPF) CALLS FOR CALM.

2

Medical and Health Workers Union of Nigeria,Niger State Council. Felicitates Governor and His Deputy on their Inauguration..

1

NUT Niger state branch Felicitate Emir of Kagara on his presentation of staff of Office and Coronation.

0
Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

July 8, 2025
Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

July 8, 2025
NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 

NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 

July 8, 2025
NDLEA Seizes AK-47, Substantial Drug Haul in Coordinated Operations Across Nigeria

NDLEA Recovers $17.7 Million in Travelers’ Cheques Hidden in Children’s Books. 

July 7, 2025

Recent News

Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

July 8, 2025
Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

July 8, 2025
NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 

NiMet Issues Flash Flood Risk Alert for July 2025 as Rainfall Intensifies Across Nigeria. 

July 8, 2025
NDLEA Seizes AK-47, Substantial Drug Haul in Coordinated Operations Across Nigeria

NDLEA Recovers $17.7 Million in Travelers’ Cheques Hidden in Children’s Books. 

July 7, 2025

Follow Us

Browse by Category

  • Business
  • Crime
  • Education
  • Health
  • National News
  • Niger State Governor
  • Opinions
  • Politics
  • Sports
  • Uncategorized
  • World News

Recent News

Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

Niger State Electricity Regulatory Commission Issues Order for Regulation of Electricity Market Operations in the State Effective Wednesday, July 9, 2025.

July 8, 2025
Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

Ex-Rep. Legbo-Kutigi lauds Gov. Bago’s visionary leadership 

July 8, 2025
  • Home
  • National News
  • Education
  • Health
  • Crime
  • Opinions
  • Politics
  • World News
  • Niger State Governor
  • Sports
  • Business

© 2024 All Rights Reserved

No Result
View All Result
  • Home
  • National News
  • Education
  • Health
  • Crime
  • Opinions
  • Politics
  • World News
  • Niger State Governor
  • Sports
  • Business

© 2024 All Rights Reserved