Evaluating Local Content Policy of Insurance Oil and Gas Risk Portfolio as Capacity Building Strategy for Nigeria Insurance companies
Evaluating Local Content Policy of Insurance Oil and Gas Risk Portfolio as Capacity Building Strategy for Nigeria Insurance companies

Summary/Abstract: Inability of local firms in Nigeria to compete globally informed the introduction of having a local input in form of a policy to enhance the ability of home grown vendors, but this is more pronounced in manufacturing sector than service sector. This study therefore evaluates the relationship between local content policy of oil and gas risk portfolio as a strategy and capacity enhancement of the Nigeria insurance companies’ vis-à-vis premium growth, resource capacity, and competiveness. The Annual reports of 13 insurance firms in Nigeria were used from 2008-2016, while 150 copies of questionnaire were distributed to CHI Plc, STACO Plc, and SOVEREIGN TRUST INSURANCE. Growth rate analysis and nonparametric correlations were employed in this study. It was found out that having local input as a form of policy has improved oil and gas premium income in the insurance companies in Nigeria. It was also established in this study that the policy has enhanced the resource ability and competitiveness of the sector.

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