The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has renewed its call for the full implementation of the Petroleum Sector Insurance Law, insisting that the policy is critical to strengthening Nigeria’s oil and gas industry.
The organisation made its position known during the OPSN Stakeholders Engagement held in Lagos, where it argued that enforcing the law would enhance operational standards and protect investments across the petroleum value chain.
Representing the National President of NACCIMA, Engr. Jani Ibrahim, OON, the Director-General, Engr. Sola Obadimu, said deepening the insurance culture remained vital for boosting investor confidence in the sector.
Obadimu noted that the Nigerian business environment, especially high-risk industries such as oil and gas, logistics, and manufacturing, could not thrive sustainably without adequate insurance coverage.
According to him, insurance plays a central role in mitigating business risks, attracting foreign direct investment, and stabilising economic activities.
The DG stressed that with the new law now in place, operators in the petroleum value chain must prioritize compliance, given the increasing risks and complexities within the sector.
He also highlighted NACCIMA’s ongoing collaboration with the Ministry of Petroleum Resources and other members of the Organised Private Sector of Nigeria (OPSN) to align industry practices with the requirements of the Petroleum Sector Insurance Law.
Obadimu explained that this partnership also extends to ensuring operators comply with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a law expected to reshape insurance enforcement nationwide.
He described the NIIRA as a milestone reform aimed at eliminating unsafe operational practices, particularly the distribution and transportation of petroleum products without proper insurance.
The DG commended the support of key industry groups, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), PETROAN, PDOGMAN, and the Dangote Refinery, for embracing the digitisation and standardisation of compliance processes.
Initial resistance from some operators, he said, eased following clarifications from a representative of the Nigerian Insurance Association (NIA), Mr. Soji Oni, who explained that the NIIRA was not intended to increase operational costs.
Oni reportedly assured stakeholders that the reforms were designed to ensure adequate compensation and stronger protection for lives and property in the event of accidents or losses.
Following the engagement, several industry leaders, including the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Olufemi Adebayo Adewole, and the Lagos Coordinator of PETROAN, Mr. Ajani Adeolu, expressed support for the mandatory insurance initiative.
Adeolu, in a separate interview, reaffirmed his endorsement of the policy, while the Director of the Dangerous Goods Academy, Dr. Alban Igwe, said stakeholders now better appreciate the welfare-driven intent of the reforms, even amid rising inflation.
Also speaking at the event, the Vice Chairperson of AML Bonded Terminal, Mrs. Affiong Israel, emphasised the need for strict discipline in the implementation process, noting that reforms succeed when compliance is taken seriously.
Reiterating NACCIMA’s broader economic aspirations, Obadimu affirmed that the association remains committed to supporting national efforts aimed at achieving a $1 trillion GDP by 2030 through policies that enhance business confidence and safeguard investments in the petroleum sector.
