Challenges on the domestication of oil and gas insurance in Nigeria

This dissertation examines the challenges of domesticating oil and gas insurance in Nigeria. The methodology adopted is both quantitative and qualitative, using questionnaire and interview to generate required data for the research. The research identified some challenges preventing domestic insurers from insuring oil and gas risks to include inadequate capital, lack of expertise and technology, inconsistencies in government policies, poor regulation and lack of innovation. Other findings revealed that the industry is male-dominated, ages of the experienced personnel in oil and gas departments are between 40 and50 and all are well educated and also with knowledge in Local Content Act. The research contributes to knowledge by using primary data from practitioners in oil and gas, which is a departure from earlier studies. It also seeks the review of the Act to make it insurance-friendly, provides new methods of practice, and brings to the attention of the umbrella association, Nigeria Insurers Association (NIA), the need to foster cooperation among practitioners to merge or form pools to reduce capital challenges and avoid leakages in premium through connivance of practitioners with foreign firms. With this, more premiums will be retained to increase the needed capacity to domesticate more oil and gas insurance in Nigeria.