NACCIMA pushes for full implementation of Petroleum insurance law
NACCIMA pushes for full implementation of Petroleum Insurance Law
…Says Policy Will Strengthen Sector and Protect Investments
By Babatunde Aremu
As part of efforts to strengthen Nigeria’s Oil and Gas industry The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, has intensified its push for full implementation of the Petroleum Sector Insurance Law.
Speaking at the OPSN Stakeholders Engagement in Lagos, NACCIMA’s National President, Engr. Jani Ibrahim, OON, represented by the Director-General, Engr. Sola Obadimu stressed that deepening insurance culture is vital for boosting investor confidence, mitigating business risks, and stabilizing economic activities.
“As business owners, the importance of insurance for our business cannot be over emphasized as insurance coverage helps to mitigate business risks, attract foreign direct investment and stabilize our industries,” Obadimu stated.
He noted that adequate insurance coverage is now central to operations in the petroleum value chain as well as other sectors such as logistics, agriculture, and manufacturing.
Obadimu highlighted NACCIMA’s collaboration with the Ministry of Petroleum Resources and other OPSN members to align industry operations with provisions of the new law and the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
He described the NIIRA’s enforcement as a major step in eliminating unsafe practices, especially the distribution of petroleum products without proper insurance.
The DG commended major industry players including the Independent Petroleum Marketers Association of Nigerian, 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 supporting the digitisation and standardisation of processes aimed at ensuring seamless compliance.
Initial resistance from some stakeholders shifted after extensive clarifications were provided by a representative of the Nigerian Insurance Association (NIA), Mr. Soji Oni, who explained that the NIIRA is not designed to increase costs but to ensure proper compensation and protection of lives and property.
Following his presentation, several stakeholders 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, declared their support for the policy.
In a separate interview, Adeolu reaffirmed his backing, while Director of the Dangerous Goods Academy, Dr. Alban Igwe, noted that stakeholders now understand that insurance prioritizes citizens’ welfare, even in the face of inflation.
Also speaking, the Vice Chairperson of AML Bonded Terminal, Mrs. Affiong Israel, urged strict discipline in implementing the new system, stressing that policies only succeed when compliance is taken seriously.
Reaffirming NACCIMA’s commitment to supporting Nigeria’s ambition of achieving a $1 trillion GDP by 2030, Obadimu said the association will continue to champion reforms that enhance business confidence and protect operators across the petroleum sector.
