— A Flashback and Reflection on the Growing Power of Risk Management in National Industrial Transformation
In the unfolding story of Nigeria’s industrial awakening, few sectors have remained as quietly pivotal, yet profoundly impactful — as the insurance industry.
While the spotlight has often shone on billion-dollar refinery investments by Aliko Dangote, Hakeem Bello-Osagie, and Adebayo Ogunlesi, the real enabler of these mega ambitions is the insurance sector, whose silent but steady role underwrites Nigeria’s economic transformation.
As the refinery revolution gains momentum, it is only fitting to reflect on how insurance has evolved from a compliance tool into a national growth instrument, the silent backbone sustaining the nation’s journey toward energy independence and industrial resilience.
Flashback: From Neglect to Necessity
For years, insurance in Nigeria existed at the periphery of industrial policy. It was a formality, something investors procured to satisfy regulatory checklists.
But with the advent of high-value industrial projects, especially the Dangote Refinery, the dynamics changed dramatically.
Every stage of such mega ventures, from feasibility and engineering design to marine transport and construction, carried immense financial and operational risk. Without insurance, these projects would never have secured financing or foreign investment.
As The Ameh News recalls from industry developments, it was robust insurance frameworks that turned uncertainty into action, guaranteeing compensation in the event of loss, and assuring financiers of project continuity.
Reflection: Insurance as an Industrial Policy Tool
Today, Nigeria’s insurance industry is not merely underwriting risks, it is underwriting the nation’s industrial future.
By ensuring that projects of national significance are insured locally, the industry is retaining capital within Nigeria and empowering local expertise.
This aligns squarely with the policy direction consistently emphasized by Mr. Olusegun Ayo Omosehin, the Commissioner for Insurance and CEO of NAICOM.
“Mega projects like refineries, seaports, and energy infrastructure must be insured locally, in line with Section 65 of the Insurance Act,” Omosehin has repeatedly affirmed according to the report.
“Such directives ensure that Nigerian insurers and reinsurers retain a fair share of the premium income generated from high-value projects executed within the country.”
This policy is not just about compliance; it’s about economic sovereignty, ensuring that Nigeria’s financial ecosystem benefits directly from its industrial growth.
Reinsurance and Technical Capacity: Building Global Partnerships
The Ameh News notes that while the magnitude of refinery risks, such as explosion, machinery breakdown, and pollution , demands global participation, local insurers are increasingly building capacity to take on complex exposures.
With reinsurance collaborations through international partners, Nigerian underwriters now confidently participate in syndicate structures for refinery, power, and port projects.
Such partnerships have transformed the industry from a peripheral player into a strategic industrial risk manager capable of competing in global markets.
Celestine Ukpong, an economist and investor savvy, captured it succinctly:
“For once, Nigerian insurers are co-architects of national progress. We don’t just sell policies; we stabilize the foundations of billion-dollar investments.”
Political and Environmental Risk: The New Frontiers of Coverage
The Ameh News also observes that the refinery revolution has expanded the scope of insurance into political risk and environmental liability, areas that are now indispensable for investor assurance.
Ms. Omowale Olatunde-Agbeja, Managing Director of Boff & Co., excerpt from report explained:
“Investors now demand protection not only from physical hazards but also from policy reversals, currency restrictions, and environmental litigation. Insurance now bridges those fears, making Nigeria’s investment climate more predictable.”
This broadening of coverage areas highlights how insurance has become a pillar of risk diplomacy, a mechanism for both domestic confidence and foreign investor attraction.
Beyond Premiums: A Pillar of Economic Stability
Insurance’s impact transcends the collection of premiums. It is the invisible machinery that guarantees industrial continuity, investor confidence, and economic resilience.
The Ameh News believes that this strategic role deserves stronger recognition in Nigeria’s economic planning. Policymakers must view insurance as an integral component of national industrial policy, just as vital as fiscal reforms or infrastructure finance.
Without it, projects collapse under uncertainty; with it, ambition becomes sustainable.
The Quiet Force Behind National Progress
As Nigeria continues its march toward refinery self-sufficiency, the insurance sector remains the unspoken partner powering this transformation.
Through policies guided by NAICOM’s regulatory wisdom, reinsurance collaboration, and professional innovation, the industry is asserting itself as the silent backbone of Nigeria’s refinery revolution.
The Ameh News maintains that any conversation about industrial progress, energy self-reliance, or infrastructure finance must begin, ‘and end’ with one reality:
Without insurance, the refinery dream would remain just that, a dream.
In this reflective Ameh News editorial, “Insurance: The Silent Backbone of Nigeria’s Refinery Revolution,” the spotlight turns to how Nigeria’s insurance industry, guided by NAICOM and Commissioner Olusegun Ayo Omosehin’s local insurance mandate, is powering investor confidence, retaining national premiums, and driving industrial stability across mega refinery and energy projects.
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