The Need for Increased Insurance Penetration in Nigeria
Enterprises NGR has highlighted the importance of increasing the insurance penetration rate in Nigeria. The company is advocating for a three percent increase in insurance premium income relative to the Gross Domestic Product (GDP). This call for action was made during the 2026 insurance sector consultative forum, which had the theme: “Driving collective advocacy for the transformation of Nigeria’s Insurance Industry.”
Aigboje Aig-Imoukhuede, Chairman of Enterprises NGR, emphasized that the goal is to make insurance more relevant in the Nigerian economy. He pointed out that currently, the insurance penetration rate is below one percent in terms of the insurance-to-GDP ratio.
“Several countries have higher rates, such as three percent or even 11 percent. If we can grow from our current position to three percent, that would mean tripling the sector. If we reach 11 percent, it would be a tenfold growth, and the impact on the overall economy would be significant,” he said.
The firm is committed to driving growth in the insurance sector through collaboration with various stakeholders. Aig-Imoukhuede noted that many countries that have transitioned from emerging to advanced economies have vibrant financial and professional services sectors. These sectors serve as anchors for international investment and help mobilize domestic investment.
“Investment is the greatest source of economic growth, and the lever through which this growth is achieved is through the financial and professional services sector. Therefore, we aim to have a strong and professional service sector. One of the key professions and services globally is insurance, which is why we are focusing on the insurance sub-sector at this time,” he added.
Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, commended Enterprises NGR for its efforts to boost the insurance sector. He stressed the importance of collaboration in implementing the Nigeria Insurance Industry Reform Act.
“The purpose of this gathering goes beyond just enacting the law; it is about starting the implementation of the legislation. That is the only way to move the insurance industry forward. Effective implementation requires cooperation and collaboration among all industry players, and we must thank Enterprises NGR for leading this initiative,” he said.
Olusegun Ayo Omosehin, Chief Executive Officer of the National Insurance Commission (NAICOM), also emphasized the need for collaboration to deepen insurance penetration.
“No nation can achieve significant growth without the resilience provided by the insurance sector,” he stated.
Key Takeaways from the Forum
- Insurance Penetration: Nigeria’s current insurance penetration rate is below one percent, far behind countries with rates of three to 11 percent.
- Economic Growth: Increasing insurance penetration could lead to substantial economic growth, with potential tripling or even tenfold increases in the sector.
- Collaboration: Stakeholders across the insurance industry recognize the importance of collaboration in driving growth and implementing reforms.
- Professional Services: A strong financial and professional services sector is essential for sustainable economic development.
- Insurance Role: Insurance plays a critical role in providing the resilience needed for economic growth.
Future Outlook
With the emphasis on collaboration and the need for increased insurance penetration, the future of Nigeria’s insurance sector looks promising. The involvement of key stakeholders, including Enterprises NGR, the Senate Committee, and NAICOM, signals a unified effort to transform the industry.
As the sector continues to evolve, the focus will remain on enhancing insurance penetration, fostering partnerships, and ensuring the effective implementation of regulatory frameworks. This collective approach is expected to drive the necessary changes to make insurance a more integral part of Nigeria’s economy.
