Key players within the insurance and pension sectors are advocating for enhanced regulatory measures to safeguard and grow Nigeria’s substantial pension fund assets, currently valued at N24.6 trillion, alongside insurance assets totaling N3.3 trillion.
By the close of the 2024 fiscal year, the insurance industry’s asset base was recorded at N3.3 trillion, with projections indicating a rise beyond N4 trillion by the end of 2025. Meanwhile, pension fund assets reached N24.6 trillion as of June 2025, underscoring the sectors’ significant economic footprint.
During the 10th Anniversary Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) held in Victoria Island, Lagos, experts emphasized that although current regulations provide a solid foundation, there is a pressing need for revisions that humanize regulatory approaches and enhance their effectiveness.
Olusegun Omosehin, Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), highlighted the critical role a mature insurance regulatory framework plays in stimulating economic development by channeling long-term savings into productive investments and alleviating fiscal pressures on government resources.
He further elaborated on the recently enacted Nigeria Insurance Industry Reform Act (NIIRA) 2025, describing it as a comprehensive legislative framework designed to underpin a resilient insurance sector. Represented by NAICOM’s Director of Legal, Enforcement, and Market Development, Telmiz Usman, Omosehin explained that NIIRA 2025 establishes the core legal provisions, with detailed operational guidelines to be developed through subsidiary regulations and self-regulatory mechanisms.
Omosehin also pointed out that new regulations concerning minimum capital requirements (MCR) have been introduced to clarify acceptable asset and liability classifications for MCR calculations. He affirmed NAICOM’s commitment to transformative reforms and market development initiatives that are steering the insurance industry toward a pivotal phase of growth.
“Our goal is to maintain a robust and stable insurance sector that significantly contributes to Nigeria’s economic advancement. Protecting policyholders and beneficiaries remains a top priority. Through collaborative efforts among all stakeholders, we anticipate improved operational performance and sustained sectoral growth,” he stated.
In parallel, Ms. Omolola Oloworaran, Director-General of the National Pension Commission (PenCom), revealed plans to revise pension investment guidelines. This adjustment would permit Pension Fund Administrators (PFAs) to allocate funds into infrastructure projects and private equity ventures, thereby broadening investment horizons and enhancing returns.
Represented by PenCom’s Head of Corporate Communications, Ibrahim Buwai, Oloworaran emphasized that these changes aim to boost pension contributors’ investment yields while generating tangible economic benefits through pension asset deployment.
Additionally, the Micro Pension Plan (MPP) is set to be rebranded as the Personal Pension Plan to encourage wider participation beyond micro-entrepreneurs, targeting a broader spectrum of business owners who have yet to enroll in the main pension scheme.
Adetunbi Ashaye, Head of Operations at Parthian Partners Limited, urged stakeholders to intensify efforts in educating Nigerians about the advantages of the Contributory Pension Scheme (CPS). He noted that some individuals seeking to exit the scheme overlook that the CPS was introduced to rectify the shortcomings of the previous unfunded pension system.
“Unlike the old system, which lacked funding, the current scheme is backed by contributions from both employees and employers and is stringently regulated,” Ashaye explained. He stressed the importance of enhancing financial literacy, as many Nigerians undervalue the significance of pension planning.
“The scheme’s impact extends beyond individual retirement security; it supports a dignified post-retirement life. Our responsibility as industry players is to raise awareness and encourage continuous support for the contributory pension system,” he added.
Meanwhile, Ike Chioke, Chairman of Rex Insurance Limited and Group Managing Director of Afrinvest Limited, underscored the necessity of fortifying insurance and pension frameworks to promote long-term economic stability and financial inclusion. Delivering a presentation titled ‘Strengthening Insurance and Pension Frameworks for a Better Economy,’ Chioke, represented by Afrinvest’s Group Deputy Managing Director Victor Ndukauba, praised NAIPE for its role in enhancing public knowledge of these sectors.
“Insurance and pensions serve as foundational pillars of financial security, not only mitigating risks but also mobilizing capital for sustainable economic growth. They are essential components of a resilient economy, far beyond mere financial instruments,” Chioke remarked. He called for comprehensive reinforcement of regulatory structures to unlock the full potential of these industries.
He also highlighted emerging challenges such as integrating environmental, social, and governance (ESG) criteria, leveraging artificial intelligence, addressing cybersecurity threats, and adapting to evolving labor market trends including the gig economy.
Concluding his remarks, Chioke advocated for enhanced collaboration among all stakeholders, increased public engagement, and ongoing regulatory innovation to sustain the positive momentum of sector reforms.
