The lack of capacity hinders the sector of energy insurance

The entry into force of the April 2000 legislation banning the placement of gas and oil risks abroad before exhausting local capacities has not yet produced the desired effects. Nigerian insurers are still trying to gather the necessary financial capacities but the current financial situation prevents them from obtaining capital by making recourse to the markets. Furthermore, Naicom has failed to enforce this law since most of the exploitations continue to be insured abroad because local insurers do not have an appropriate rating. The April 2000 decree was supposed to allow the retention of at least 70% of oil and gas risks in Nigeria. Today, only 5% of these risks are placed locally.