By  Patience SAGHANA
Insurance practitioners in the country are set to explore more opportunities in the oil and gas businesses vis-à-vis the Nigerian Local Content Act 2010.

Operators in the sector are being led by the National Insurance Commission (NAICOM) and the Chartered Insurance Institute of Nigeria (CIIN) in Lagos today to see how best the sector can best capture the business.

The Nigerian Local Content Act takes precedence over all existing content laws and regulations enacted to provide for the development of indigenous content in the Nigerian oil and gas industry as the Content Act 2010 ensures priority is given to indigenous services companies without recourse.

Failure by oil operators, contractors and sub-contractors to comply with the provisions of the Act is an offence punishable by a fine of 5 percent of the contract value for each of the projects in which the violation occurs or the total cancellation of the project in the no distant future.

And this 2010 Act puts Nigeria in the ranks of oil producing countries such as Norway, Brazil and Angola that have successfully enforced local content policy-driven economies
The Key objective of the one day seminar sponsored by NAICOM and anchored by CIIN is geared at sensitising insurance operators on international best practice while the sector harmonise industry strategies for the actualisation of the objectives of the Content Act.

More so, the commission will seize the opportunity to harmonise practitioners’ inputs prior to the release of an Oil & Gas Insurance Policy Framework for the sector while the insurance regulator continues to strengthening compliance with relevant laws and regulations.

Mr. Sunday Thomas, Director-General of the Nigerian Insurers Association (NIA) says the Local Content Law has the potential to generate over 30,000 jobs in the next five years.

Thomas said, “The law would transform the industry from a major importer of goods and services to an industry that sources a substantial proportion of its inputs locally to support operations thereby empowering Nigerians”.

He further said that it would enhance human capacity development because companies will be compelled to train their staff, stressing that man power training is one of the things needed to move the sector forward.

Mr Gus Wiggle, Managing Director of Linkage Assurance Plc is of the view that the law would open other windows of opportunities for insurance companies.

He affirmed “The law has given the local companies opportunity to venture into those areas that were strictly restricted for multinational companies before now.”

Mr Remi Babalola, Minister of State for Finance implored insurance operators to galvanise its members to the reality of the new challenge and opportunities enshrined in that law for the insurance industry in Nigeria.

Babalola said: “This singular development has opened up vistas of expansion into the hitherto untapped insurance business in the oil industry by local industry insurance companies in Nigeria.

There are terrific opportunities in physical infrastructure development and pension development begging to be tapped.