Stakeholders in the insurance and pension sectoral value chain are calling for stronger regulatory frameworks to boost and protect 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, but there are indications that they will rise above N4 trillion by the end of 2025. The nation’s Pension fund assets stood at N24.6 trillion as of June 2025.
The experts, who spoke at the 10th Anniversary/Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) held on Tuesday at Victoria Island, Lagos, noted that while the existing regulations were good, there were areas that needed to be reviewed and amended, especially to give regulations a human face.
On his part, the commissioner for Insurance/CEO, the National Insurance Commission (NAICOM), Olusegun Omosehin, said a well-developed insurance framework contributes to economic growth by mobilising long-term savings, promoting investment, and reducing the financial burden on the government.
Stating that the recent enactment of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 underscores the commission’s shared commitment to fostering a robust and effective insurance framework that drives economic progress, Omosehin, who was represented by the director, Legal, Enforcement and Market Development, Telmiz Usman, NAICOM, said, ‘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.’
To him, “regulation on minimum capital requirements (MCR) has also been issued to guide the admissible and non-admissible assets and liabilities for determining the MCR. The Commission has spearheaded transformative reforms and market development initiatives, propelling the insurance industry to a pivotal turning point.
“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, said the regulatory body is considering tweaking the pension industry investment guidelines so that Pension Fund Administrators(PFAs) can now invest pension funds in infrastructure and private equities.
This is part of the activities to strengthen the pension framework and expand its impact and adoption.
Oloworaran, who was represented at the event by the head of Corporate Communications, PenCom, Ibrahim Buwai, said this development would ensure that pension contributors get good returns on investment of their contributions, while the pension assets could now give real returns in terms of economic impacts.
He equally disclosed that the Micro Pension Plan(MPP) would be renamed as Personal Pension Plan to widen its adoption as the plan was not restricted to those engaged in Micro businesses alone but entrepreneurs generally, who had not registered under the main pension scheme.
Meanwhile, the head of Operations, Parthian Pensions Limited, Mr. Adetunbi Ashaye, has called on stakeholders in Nigeria’s pension sector to educate Nigerians on the importance of subscribing to the Contributory Pension Scheme (CPS).
While highlighting some of the developments in the industry that demonstrate its potential for growth, he said, people clamouring to exit the scheme had forgotten so soon that it was the past bad experiences that the new scheme was introduced to correct.
“This is because the previous pension system was unfunded. Now that it is funded through the contributions of the employees and the employers, it is highly regulated.
“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 advised.
“The impact of the scheme on the economy is ensuring that people have a good retirement; people have a good life after they have stopped working. In other words, what we need to do in the industry as operators is to ensure financial literacy. We need to let people know what is going on and why they should continually support the contributory pension scheme,” he added.
Moreover, the chairman of Rex Insurance Limited, Ike Chioke, who is also the group managing director (GMD) of Afrinvest Limited, emphasised the need to strengthen the frameworks to ensure long-term economic stability and financial inclusion while delivering a paper on ‘Strengthening Insurance and Pension Frameworks for a Better Economy’.
Chioke, represented by the group deputy managing director(GDMD), Afrinvest Limited, Victor Ndukauba, commended the association for its role in advancing public understanding of the insurance and pension sectors.
According to Ike Chioke, “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,” he noted. To transform these sectors into engines of economic growth, we must strengthen their frameworks at all levels.”
He acknowledged the need to address emerging challenges around ESG integration, AI, cybersecurity, and the evolving dynamics of work, including the gig economy.
In conclusion, he called for greater collaboration among stakeholders, increased public awareness, and sustained regulatory innovation to ensure the continued impact of reforms.
