The Managing Director and Chief Executive Officer of Universal Insurance Plc, Jeff Duru, has advocated an aggressive partnership framework between Nigeria’s energy sector and the local insurance market to drive broad-based economic growth and secure national asset resilience.
Speaking as the Chairman of the Occasion at the 10th Annual SUPERNEWS Conference in Lagos, Duru emphasised that Nigeria’s path towards economic sustainability relies heavily on two compounding pillars: accelerated technological innovation and strict compliance with domestic asset underwriting guidelines.
The conference, themed ‘Local Content and Digitisation: Building Synergy Between the Oil and Gas and Insurance Sectors for Inclusive Growth,’ brought together key regulatory minds, energy executives, and financial industry leaders.
In his opening address, Duru emphasised that local content policies must look beyond immediate oilfield participation to include supporting economic ecosystems like risk management.
He said, “Nigeria’s quest to consolidate its position as Africa’s largest economy requires stronger local capacity development, technological innovation, and cross-sector collaboration.
“The Nigerian Oil and Gas Industry Content Development Act has significantly increased indigenous participation in the petroleum value chain by encouraging local expertise, strengthening domestic enterprises, and retaining greater economic value within the country.”
He added that local capacity retention forms the bedrock of modern sovereign financial strength.
“Local content should extend beyond ownership and participation in oil and gas operations to include the development of critical support industries such as insurance,” he continued. “Insurance plays a vital role in managing risks across exploration, production, transportation, refining, and distribution activities.”
A primary issue raised during the presentation was the historical practice of capital flight through offshore underwriting. Duru argued that bolstering the domestic insurance capacity creates a healthier capital circulation loop across the country.
He noted, “Expanding local insurance capacity will enable the retention of insurance premiums within Nigeria, strengthen the domestic financial system, improve capital formation, and empower indigenous insurers to underwrite increasingly sophisticated risks associated with the energy sector.
“Every major investment in the oil and gas industry depends on effective risk management, making insurance an indispensable partner in the country’s economic development agenda.”
To contextualise the high stakes of the industry, the Universal Insurance chief highlighted the disproportionate reliance the Nigerian government maintains on oil revenues compared to its overall Gross Domestic Product mix.
“While the sector contributes about five to six per cent of the nation’s Gross Domestic Product, it accounts for approximately 90 per cent of export earnings and about 40 per cent of government revenue,” Duru explained, “underscoring the need for a resilient insurance industry capable of supporting its continued expansion.”
Looking ahead at emerging frontiers, such as deep offshore exploration, massive natural gas pipelines, and the global energy transition, the CEO noted that underwriters must evolve structurally to stay viable.
“Emerging opportunities in deep offshore exploration, gas infrastructure development, renewable energy investments, and energy transition initiatives will require more sophisticated insurance products,” Duru said.
“This presents Nigerian insurers with opportunities to enhance technical expertise, underwriting capacity, and innovation,” he added.
He reminded the audience that current regulatory provisions set up by the National Insurance Commission and the Nigerian Content Development and Monitoring Board protect local firms, but the firms must have the internal capacity to perform.
“Existing provisions under the Nigerian Oil and Gas Industry Content Development Act require operators to place insurable oil and gas risks with Nigerian insurers and brokers where local capacity exists.
“The future of the insurance industry will depend on companies that combine strong capitalisation, technical competence, and digital innovation to meet the evolving needs of the energy sector,” Duru stated.
Concluding his remarks, Duru highlighted a clear path for corporate leaders to move beyond policy discussions and deliver tangible results in the marketplace.
“To maximise these opportunities, our key priorities must include strengthening local insurance capacity to absorb larger and more complex energy risks, and accelerating digital transformation through investments in technology, cybersecurity, and human capital.
“Closer collaboration between the insurance and oil and gas industries will unlock significant economic value, attract investment, strengthen national resilience, and accelerate inclusive growth,” Duru stated.
SOURCE: PUNCH NEWS PAPER
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