Onozure Dania
7 January 2009
Chairman, Nigeria Insurers Association (NIA), Mr. Wole Oshin, has expressed doubt over the ability of the insurance industry to handle 70 per cent of the market in the oil and gas sector of the nation's economy.
Oshin disclosed this in a parley with journalists in Lagos over the weekend, where he reviewed operations in the insurance sector in the last one year after the consolidation in the sector.
While responding to inquires on what the commission said about the insurance guideline, he said "Well, I'm not in a position to say that the market, as it stands today, can take on 40, 70 per cent of the oil and gas of the entire industry. That's not what I'm saying.
"What we are fighting for, and what we are saying is that you don't know how a house is built if you are not put in the construction team. Though we don't own the house, but let us be there. And what is happening now is that this consortier, the more people that get involved, no matter how small, in the issue of oil and gas, the better for the nation."
"If you know what it is all about, you train your staff. You know how to make provisions as you go down the line. In the area of oil and gas, I say they are low hanging fruits since they are ready to be plucked."
He said that the NNPC and the regulator are in sync with regards to the provisions of that guidelines. He noted that the guidelines spells out those that qualify and what they needed to do ensure that they broaden the ways of local participants in the oil and gas sector.
He further added that the bottom line, which was the major line of controversy, and which, either positively or negatively, a lot of journalists played on it, for consortium people, is that now, you can come as a consortium because consortier are recognised, but there are certain conditions that must be met before you can come as a consortium.
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