Stakeholders within the insurance coverage and pension sectoral worth chain are calling for stronger regulatory frameworks to spice up and shield the nation’s N24.6 trillion pension fund property and N3.3 trillion Insurance coverage property.
As of the top of the 2024 monetary yr, the insurance coverage trade’s property stood at N3.3 trillion, however there are indications that they are going to rise above N4 trillion by the top of 2025. The nation’s Pension fund property stood at N24.6 trillion as of June 2025.
The consultants, who spoke on the tenth Anniversary/Convention of the Nigerian Affiliation of Insurance coverage and Pension Editors (NAIPE) held on Tuesday at Victoria Island, Lagos, famous that whereas the prevailing laws had been good, there have been areas that wanted to be reviewed and amended, particularly to present laws a human face.
On his half, the commissioner for Insurance coverage/CEO, the Nationwide Insurance coverage Fee (NAICOM), Olusegun Omosehin, stated a well-developed insurance coverage framework contributes to financial development by mobilising long-term financial savings, selling funding, and lowering the monetary burden on the federal government.
Stating that the current enactment of the Nigeria Insurance coverage Trade Reform Act (NIIRA) 2025 underscores the fee’s shared dedication to fostering a sturdy and efficient insurance coverage framework that drives financial progress, Omosehin, who was represented by the director, Authorized, Enforcement and Market Growth, Telmiz Usman, NAICOM, stated, ‘the NIIRA 2025 is a framework regulation which supplies for the substantive provisions whereas the small print are to be supplied by means of laws, pointers and different regulatory devices, in addition to promotes self regulation.’
To him, “regulation on minimal capital necessities (MCR) has additionally been issued to information the admissible and non-admissible property and liabilities for figuring out the MCR. The Fee has spearheaded transformative reforms and market improvement initiatives, propelling the insurance coverage trade to a pivotal turning level.
“As a Fee, we’re decided to make sure a sound and secure insurance coverage sector that can optimally contribute to the expansion and improvement of the Nigerian insurance coverage sector. The dedication of the fee in making certain sufficient safety of the policyholders and beneficiaries to the insurance coverage contract stays agency. By a collaborative synergy amongst all stakeholders, we count on a marked enhance in operational metrics, reflecting the sector’s accelerated development trajectory and reaffirming our dedication to excellence.”
Equally, the director common of the Nationwide Pension Fee (PenCom), Ms Omolola Oloworaran, stated the regulatory physique is contemplating tweaking the pension trade funding pointers in order that Pension Fund Directors(PFAs) can now make investments pension funds in infrastructure and personal equities.
That is a part of the actions to strengthen the pension framework and develop its impression and adoption.
Oloworaran, who was represented on the occasion by the top of Company Communications, PenCom, Ibrahim Buwai, stated this improvement would make sure that pension contributors get good returns on funding of their contributions, whereas the pension property may now give actual returns when it comes to financial impacts.
He equally disclosed that the Micro Pension Plan(MPP) could be renamed as Private Pension Plan to widen its adoption because the plan was not restricted to these engaged in Micro companies alone however entrepreneurs typically, who had not registered below the primary pension scheme.
In the meantime, the top of Operations, Parthian Companions Restricted, Mr. Adetunbi Ashaye, has known as on stakeholders in Nigeria’s pension sector to teach Nigerians on the significance of subscribing to the Contributory Pension Scheme (CPS).
Whereas highlighting a number of the developments within the trade that display its potential for development, he stated, folks clamouring to exit the scheme had forgotten so quickly that it was the previous unhealthy experiences that the brand new scheme was launched to appropriate.
“It’s because the earlier pension system was unfunded. Now that it’s funded via the contributions of the staff and the employers, it’s extremely regulated.
“What actually must occur is the necessity to drive monetary literacy as a result of folks in Nigeria see pension as insignificant, one thing that’s unimportant, “ he suggested.
“The impression of the scheme on the economic system is making certain that folks have a great retirement; folks have a great life after they’ve stopped working. In different phrases, what we have to do within the trade as operators is to make sure monetary literacy. We have to let folks know what’s going on and why they need to frequently assist the contributory pension scheme,” he added.
Furthermore, the chairman of Rex Insurance coverage Restricted, Ike Chioke, who can also be the group managing director (GMD) of Afrinvest Restricted, emphasised the necessity to strengthen the frameworks to make sure long-term financial stability and monetary inclusion whereas delivering a paper on ‘Strengthening Insurance coverage and Pension Frameworks for a Higher Economic system’.
Chioke, represented by the group deputy managing director(GDMD), Afrinvest Restricted, Victor Ndukauba, recommended the affiliation for its function in advancing public understanding of the insurance coverage and pension sectors.
In keeping with Ike Chioke, “Insurance coverage and pensions are twin pillars of economic safety that not solely shield in opposition to dangers but additionally mobilise long-term capital and foster sustainable development. They aren’t mere monetary merchandise; they’re the backbones for a resilient economic system,” he famous. To remodel these sectors into engines of financial development, we should strengthen their frameworks in any respect ranges.”
He acknowledged the necessity to handle rising challenges round ESG integration, AI, cybersecurity, and the evolving dynamics of labor, together with the gig economic system.
In conclusion, he known as for higher collaboration amongst stakeholders, elevated public consciousness, and sustained regulatory innovation to make sure the continued impression of reforms.
