Stakeholders in Nigeria’s insurance and pension value chain have called for stronger regulatory frameworks to boost and safeguard the country’s N24.6 trillion pension fund assets and N3.3 trillion insurance assets.
As of the end of the 2024 financial year, the insurance industry’s assets stood at N3.3 trillion, with projections indicating they will surpass N4 trillion by the end of 2025, while pension fund assets reached N24.6 trillion as of June 2025.
Speaking at the 10th Anniversary Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Victoria Island, Lagos, the experts acknowledged that existing regulations were effective but stressed the need for amendments to make them more people-oriented. The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, explained that a strong insurance framework contributes significantly to economic growth by mobilising long-term savings, encouraging investment, and reducing government’s financial burden.
Omosehin, represented by NAICOM’s Director of Legal, Enforcement and Market Development, Telmiz Usman, said the enactment of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 reflects the commission’s commitment to strengthening the insurance sector. According to him, “The NIIRA 2025 is a framework law which provides for the substantive provisions while the details are to be provided by way of regulations, guidelines and other regulatory instruments, as well as promotes self-regulation.” He added that regulation on minimum capital requirements has also been issued to guide admissible and non-admissible assets and liabilities for determining capital thresholds, noting that the commission had spearheaded transformative reforms to position the industry for accelerated growth.
He stressed, “As a Commission, we are determined to ensure a sound and stable insurance sector that will optimally contribute to the growth and development of the Nigerian insurance sector. The commitment of the commission in ensuring adequate protection of the policyholders and beneficiaries to the insurance contract remains firm. Through a collaborative synergy among all stakeholders, we expect a marked increase in operational metrics, reflecting the sector’s accelerated growth trajectory and reaffirming our commitment to excellence.”
Similarly, the Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, disclosed that the regulatory body is reviewing pension industry investment guidelines to allow Pension Fund Administrators to invest in infrastructure and private equities. Represented by PenCom’s Head of Corporate Communications, Ibrahim Buwai, she explained that this initiative would improve returns for contributors while strengthening the real economic impact of pension assets.
She also revealed that the Micro Pension Plan would be renamed the Personal Pension Plan to encourage wider adoption, noting that it should not be seen as restricted to micro-business operators but available to entrepreneurs generally who are not under the main pension scheme.
On his part, the Head of Operations at Parthian Partners Limited, Adetunbi Ashaye, urged stakeholders to prioritise educating Nigerians on the importance of the Contributory Pension Scheme (CPS). He cautioned against agitations to exit the scheme, reminding that the CPS was introduced to correct the failures of the unfunded previous system. “What really needs to happen is the need to drive financial literacy because people in Nigeria see pension as insignificant, something that is unimportant,” he said. Ashaye added that the scheme was designed to guarantee better retirements, urging continuous public enlightenment to sustain trust in the system.
Delivering a paper on strengthening insurance and pension frameworks, the Chairman of Rex Insurance Limited and Group Managing Director of Afrinvest Limited, Ike Chioke, emphasised that insurance and pensions are the twin pillars of financial security. Represented by Afrinvest’s Group Deputy Managing Director, Victor Ndukauba, Chioke stated, “Insurance and pensions are twin pillars of financial security that not only protect against risks but also mobilise long-term capital and foster sustainable growth. They are not mere financial products; they are the backbones for a resilient economy. To transform these sectors into engines of economic growth, we must strengthen their frameworks at all levels.”
He noted that the industry must address challenges around ESG integration, artificial intelligence, cybersecurity, and the changing nature of work, including the gig economy. Chioke called for stronger collaboration among stakeholders, increased public awareness, and continuous regulatory innovation to ensure reforms deliver long-term economic stability and financial inclusion.
