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Experts seek sector reforms to deepen insurance penetration in Nigeria
By Cynthia Alo
Experts in the insurance and financial services sector have called for stronger regulation, improved public awareness and digital distribution channels to expand insurance coverage and strengthen the sector’s contribution to national development.
The call was made at the Insurance Sector Transformation Consultative Forum 2026, a gathering convened by EnterpriseNGR to accelerate reforms, rebuild consumer confidence and deepen insurance penetration in the country.
Speaking at the forum, Chairman of EnterpriseNGR, Aigboje Aig-Imoukhuede, said the development of strong financial and professional services sectors was critical for countries seeking to transition from emerging to advanced economies.
According to him, sectors such as banking, insurance, asset management, accounting, law and fintech play a central role in mobilising domestic investment and attracting foreign capital.
“Across the world, economies that have moved from emerging status to advanced economies have very vibrant financial and professional services sectors. They become anchors for investment both domestically and internationally,” he said.
Aig-Imoukhuede noted that Nigeria’s insurance sector currently contributes less than one per cent of Gross Domestic Product (GDP), far below levels recorded in several African countries where insurance penetration ranges between three and 11 per cent.
He said improving penetration could significantly expand the industry and strengthen economic resilience.
“If we move from where we are today to three per cent, that means trebling the sector. If we move to 11 per cent, that is almost a tenfold growth and the impact on the overall economy will be tremendous,” he said.
He added that expanding the number of insurance agents could also create large-scale employment opportunities, noting that the country currently has fewer than 100,000 agents.
Also speaking, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Tokunbo Abiru, said the forum comes at a critical time when the country has just enacted a new law to modernise the industry.
According to him the recently passed Nigerian Insurance Industry Reform Act 2025 would strengthen regulation and enhance operations within the sector.
“We have just passed a recent law meant to modernise and improve all the pieces of legislation relating to insurance in Nigeria. Many of the existing laws were outdated, so we had to bring them up to speed,” Abiru stated.
According to him, the next phase is effective implementation of the legislation through collaboration among regulators, operators and other stakeholders.
Also speaking, Commissioner for Insurance and Chief Executive of National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, described the forum as a historic platform for collective action within the industry.
He said the insurance sector must play a central role in supporting the Federal Government’s ambition of building a $1 trillion economy.
He stated: “There is no nation that can successfully transition to that level of growth without the resilience that the insurance sector provides. The transformation of this sector is no longer optional; it must commence now.”
Omosehin added that the regulator was ready to collaborate with stakeholders to ensure that the desired reforms translate into concrete outcomes for businesses and the wider economy.
Director-General of the Nigerian Insurers Association, Bola Odukale, said the industry was undergoing a major reform phase and would require strong collaboration to achieve meaningful transformation.
According to her, the implementation of the new reform law and other initiatives would help deepen insurance penetration and enhance the value delivered to policyholders.
On his part, Managing Director and Chief Executive Officer of Leadway Assurance, Gboyega Lesi, said the forum signalled a renewed push for the insurance industry to assume its rightful position in Nigeria’s economy.
“Insurance has been in the background for a long time, but the industry must now take its rightful place in the economy. Deepening penetration will ensure that insurance products and services are felt by the average Nigerian,” he said.
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