With the ongoing recapitalisation expected to strengthen underwriting capacity across the insurance industry, operators have intensified calls for deeper collaboration with Nigeria’s oil and gas sector, arguing that retaining more energy risks in the country is critical to deepening local content, boosting domestic capital formation and accelerating economic growth.

They maintained that a stronger alliance between insurers and oil and gas operators would not only reduce capital flight from offshore placement of high-value risks but also position Nigerian underwriters to pay a more strategic role in financing investments, supporting indigenous energy companies and advancing the objectives of the Nigeria Insurance Industry Reform Act (NIIRA) 2025.

The Group Managing Director/Chief Executive Officer of Royal Exchange Plc, Idu Okeahialam, joined the call while delivering the keynote at the Suppernews Nigeria Local Content Confab 2026.

Speaking on ‘Local Content and Digitalisation: Building Synergy between the Oil and Gas and Insurance Sectors for Inclusive Growth’, Okeahialam said the next phase of Nigeria’s economic development must be driven by stronger collaboration among strategic sectors, innovation, digital transformation and investments capable of unlocking sustainable value.

According to her, although Nigeria has made remarkable progress in implementing local content within the oil and gas industry, the country must now extend that progress to indigenous insurance, technology, technical expertise and enterprise risk management.

She described insurance as critical economic infrastructure that provides the confidence required for investment, financing and long-term business sustainability, particularly in a capital-intensive sector such as oil and gas.

Okeahialam said retaining more oil and gas insurance premiums in Nigeria would strengthen domestic capital, expand underwriting capacity and create employment opportunities while depending on professional expertise across the financial services industry.

She also identified digitalisation as a key driver of competitiveness, noting that artificial intelligence (AI), cloud computing, automation, data analytics and the Internet of Things (IoTs) are transforming business operations while creating new categories of cyber and operational risks.

According to her, insurers must move beyond indemnifying losses to becoming strategic risk advisers that help businesses anticipate emerging threats, improve resilience and strengthen operational efficiency through technology-driven risk solutions.

She envisioned closed collaboration among insurers, oil and gas companies, regulators, technology firms and investors through integrated data-sharing platforms and predictive analytics to improve underwriters to reduce losses and enhance business performance.

She further stressed that the benefits of local content and digitalisation should extend beyond large corporations to small and medium-sized enterprises, women-owned businesses, technology innovators, young professionals and host communities.