THE INSURANCE CONTRIBUTIONS IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES

THE INSURANCE CONTRIBUTIONS IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES

ABSTRACT

This project is on the topic titled “The Insurance Contribution in the Management of Risk in Nigeria Oil Industry” The work is divided into five chapters. Chapter one deals with background of the study, statement of problems that led to the research work, objectives of the study the research questions, scope of the research questions, scope and limitations of the study, significance of the study and definition of operational terms. Chapter two covers review of related literature, historical development of the insurance, reasons for insurance business in Nigeria, type of drilling operations, various type of risk in oil industry and so on. Chapter three discusses research methodology including source of data and validity of the instruments. Chapter four covers findings and discussions of findings and chapter five covers conclusions and the recommendations.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION                                                   1

1. Background of the Study                                         1
2. Statement of the Problem                                 4
3. Objective of the Study                                      4
4. Research Questions                                          5
5. Significance of the Study                                         6
6. Scope and Limitation of the Study                     7
7. Definition of Operational Terms                         8

CHAPTER TWO

LITERATURE REVIEW                                           12

2.1  An Overview                                                   12

2.2  Historical Development of Insurance

Business in Nigeria                                           12

2.3  Reasons for Insurance Business in Nigeria           14

2.4  History of Oil and Petrochemical

Industry Insurance                                           55

2.5  Types of Drilling Barges/Platform                       66

2.6  Varilus Types of Risk in Oil Industry                           33

2.7  Various Insurance Cover Available for

Oil Industry for Oil Industry                              44

2.8  Problems Facing Insurance Industry

in Management Oil Risk                                    55

CHAPTER THREE

RESEARCH METHODOLOGY

3.1  Sources of Data

3.2  Population of the Study

3.3  Instrument Used For Study

3.4  Validity of the Instrument Used

3.5  Reliability of the Study

CHAPTER FOUR

SUMMARY OF FINDINGS

4.1  Findings

4.2  Discussion of Findings

CHAPTER FIVE

5.1  Conclusion

5.2  Recommendations

5.3  Suggestions

Bibliography

Appendix I

Appendix II

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Nigeria’s economy before independence and shortly afterward largely depended on agriculture. This is because a good number of its citizens are farmers. In fact about 70% of the Nigerian populace then were basically farmers and this goes a long way to show that Nigerians are poor people. Agriculture then was her only source of foreign exchange through the sale of cash corps.

Shortly after independence and the civil war, Nigeria economy changed as a result of oil boom in the early 705. This caused the total neglect of is agricultural sector and other mineral resources which are blessed with. The boom attracted foreign investors which include banks, insurance companies and oil producing companies etc. Among the early oil producing companies to exploit its shores of Nigeria include British Petroleum Company, Uni Petrol etc.

Petroleum is a product of crude oil which is found a black substance naturally underground.

The oil industry is an important aspect in the monetization process and industrial growth of all nations which serves as source of energy to most of the modern power generators and machineries.

Petroleum is also serves as sources of revenue and also contributing to the national output. But due to the fact that our country’s economy depends largely on oil and its by product based on chemicals derived from oil sector and natural gas. It is invariably pertinent that one should consider the risk involved and the types that the petroleum industry as a whole are exposed.

THE INSURANCE CONTRIBUTIONS IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES