The Nigerian Council of Registered Insurance Brokers (NCRIB) has argued that Nigeria’s insurance penetration could witness a dramatic rise if pension assets currently managed outside the insurance industry are reintegrated into the sector.
Speaking at the 2026 Inaugural Annual Insurance Week at Nnamdi Azikiwe University, Awka, Mrs. Ekeoma Ezeibe, NCRIB President, said the separation of pension administration from the insurance industry remains one of the factors limiting the sector’s growth and penetration.
According to her, countries such as South Africa and Kenya have achieved significantly higher insurance penetration rates partly because pension-related assets and products contribute substantially to the overall insurance ecosystem.
Ezeibe recalled that pension administration was once a core component of Nigeria’s insurance industry before the enactment of the Pension Reform Act, which established the National Pension Commission (PenCom) as the regulator of pension assets.
She noted that pension funds have since grown into one of the largest pools of long-term capital in the country, with assets now approaching N30 trillion.
“If you look at the trillions of naira currently held in pension funds, you can imagine the impact if those assets were brought into the insurance net,” she said.
Her argument is simple: pension products, annuities and retirement protection are natural extensions of insurance services. Therefore, integrating them more closely with the insurance industry could deepen public participation and significantly improve penetration levels.
The concern is not without basis.
Nigeria’s insurance penetration remains below one per cent of Gross Domestic Product (GDP), one of the lowest levels in Africa. By comparison, South Africa records insurance penetration of about 12 per cent, while Kenya exceeds seven per cent.
Despite being Africa’s largest economy and most populous nation, Nigeria’s insurance industry has struggled to gain widespread acceptance among individuals and businesses.
Low public awareness, distrust of insurance providers, inadequate product innovation and weak distribution channels have all contributed to the sector’s underperformance.
Beyond pension assets, Ezeibe identified microinsurance as another powerful tool for expanding insurance coverage.
She commended the National Insurance Commission (NAICOM) for licensing dedicated microinsurance companies aimed at serving low-income Nigerians, including farmers, artisans, traders, transport operators and other informal sector participants.
Given that the informal sector accounts for a significant portion of Nigeria’s workforce, microinsurance has the potential to bring millions of previously excluded citizens into the insurance ecosystem.
According to Ezeibe, broadening coverage among these groups could gradually create a larger and more sustainable insurance market.
The NCRIB President also highlighted the industry’s slow adoption of technology as a major impediment to growth.
Globally, digital platforms have transformed insurance through online sales, automated claims processing, mobile payments and customer engagement tools. However, many Nigerian operators are yet to fully embrace these innovations.
She argued that technology can simplify insurance transactions, reduce costs and improve customer experience, making insurance more attractive to younger and digitally savvy consumers.
Public education is another area requiring urgent attention.
Many Nigerians still view insurance with skepticism or consider it unnecessary, often relying solely on faith or informal support systems during periods of loss.
Ezeibe stressed that while faith remains important, financial protection through insurance provides an additional safety net that can help families and businesses recover from unforeseen events.
