Insurance Leaders Urge Presidential Action to Cut Red Tape and Boost Growth
Stakeholders in the Nigerian insurance industry have intensified their calls for direct policy interventions from the government, warning that persistent structural bottlenecks and a lack of reform momentum could continue to stifle the sector's growth. In a high-level meeting in Abuja, a delegation led by the Nigerian Insurers Association (NIA) met with the Special Adviser to the President on Economic Matters, Tope Fasua, to seek stronger collaboration aimed at deepening insurance penetration and aligning the sector with national economic priorities.
Call for Enabling Environment
Lanre Ojuola, the Director of Operations of the NIA, emphasized that the industry is looking to the government to create an enabling environment that would unlock growth and expand coverage across key sectors of the economy. He stated, "Insurance plays a vital role in managing risks and supporting economic stability, but penetration remains very low. Stronger government support, especially in enforcement and policy alignment, will help to drive growth." Ojuola highlighted that without such interventions, the sector's potential to contribute to financial inclusion and resilience could remain untapped.
Government Response and Engagement
In response, Fasua acknowledged the critical importance of the insurance sector to economic resilience and financial inclusion. He noted that the presidency is open to deeper engagement with operators to strengthen the industry's contribution to the economy. This dialogue marks a step towards addressing long-standing issues, but industry experts caution that more concrete actions are needed beyond mere discussions.
Enforcement and Incentive Challenges
Beyond the official engagement, leading voices in the insurance sector have pointed out that the challenges are well-known and require urgent, coordinated action. Akindele Daniel, an industry consultant, stressed that enforcement of compulsory insurance policies remains a major gap. He explained, "We have enough law to drive penetration, but enforcement is weak. Government must ensure compliance with compulsory insurance if we want to see increasing growth." This sentiment was echoed by Akin Ogunbiyi, Chairman of Mutual Benefits Assurance Plc, who spoke at an industry event in Lagos. Ogunbiyi emphasized the need for incentives to attract more Nigerians into the insurance net, stating, "There must be deliberate policies such as tax incentives and integration of insurance into government programmes. Without incentives, many individuals and businesses will continue to see insurance as non-essential."
Path Forward for the Sector
The calls for action underscore a broader need for systemic changes to overcome red tape and bureaucratic hurdles. Key recommendations from the industry include:
- Strengthening enforcement mechanisms for existing insurance laws.
- Implementing tax incentives to encourage uptake among individuals and businesses.
- Integrating insurance products into government-led economic programmes.
- Fostering continuous dialogue between the government and insurance operators to ensure policy alignment.
As the sector seeks to boost its contribution to Nigeria's economy, stakeholders remain hopeful that presidential support will translate into tangible reforms. The ongoing engagement with the presidency is seen as a crucial step, but the industry emphasizes that without swift and coordinated efforts, growth could continue to be hampered by structural inefficiencies.
