NACCIMA Rallies Support for Petroleum Insurance Law to Safeguard Sector, Investments
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) is stepping up its advocacy for the full implementation of the Petroleum Sector Insurance Law, emphasizing its critical role in fortifying Nigeria’s oil and gas industry.
At the recent OPSN Stakeholders Engagement in Lagos, NACCIMA’s National President, Engr. Jani Ibrahim, OON—represented by Director-General Engr. Sola Obadimu—highlighted the transformative potential of a robust insurance framework. He stressed that fostering a strong insurance culture is essential for mitigating business risks, attracting foreign direct investment, and ensuring economic stability.
“As business owners, the importance of insurance for our businesses cannot be overemphasized as insurance coverage helps to mitigate business risks, attract foreign direct investment and stabilize our industries,” Obadimu stated.
He noted that comprehensive insurance coverage is now indispensable across the petroleum value chain and other critical sectors such as logistics, agriculture, and manufacturing.
NACCIMA is actively collaborating with the Ministry of Petroleum Resources and other members of the Organised Private Sector of Nigeria (OPSN) to align industry practices with the new Petroleum Sector Insurance Law and the forthcoming Nigerian Insurance Industry Reform Act (NIIRA) 2025. Obadimu described the enforcement of NIIRA as a pivotal move to eliminate unsafe practices, particularly the distribution of petroleum products without adequate insurance.
He commended key industry stakeholders—including the Independent Petroleum Marketers Association of Nigeria (IPMAN), Petrochemicals, Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Petroleum Distribution Oil and Gas Marketers Association of Nigeria (PDOGMAN), and Dangote Refinery—for embracing the digitization and standardization of compliance processes.
Initial concerns from some stakeholders were addressed during the event by Mr. Soji Oni of the Nigerian Insurance Association (NIA), who clarified that the NIIRA is not intended to increase operational costs but to ensure proper compensation and safeguard lives and property.
Following his presentation, several industry leaders, including Olufemi Adebayo Adewole (Executive Secretary, DAPPMAN) and Ajani Adeolu (Lagos Coordinator, PETROAN), voiced their support for the policy. Dr. Alban Igwe of the Dangerous Goods Academy emphasized that the law prioritizes public welfare, especially amid economic challenges. Meanwhile, Mrs. Affiong Israel, Vice Chairperson of AML Bonded Terminal, called for strict enforcement, noting that policy success hinges on disciplined compliance.
Reaffirming NACCIMA’s commitment to Nigeria’s economic transformation, Obadimu pledged the association’s continued support for reforms that enhance investor confidence and protect stakeholders in the petroleum sector, aligning with the nation’s ambition to achieve a $1 trillion GDP by 2030.
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