NAIPE conference identifies critical role of insurance, pension sectors in economic transformation

At the conclusion of the conference, the following key resolutions and consensus were reached by stakeholders from across the insurance and pension sectors:

1. Nigeria’s journey toward economic transformation critically depends on the development of inclusive, transparent, and efficient pension and insurance systems. A robust, reformed framework in these sectors is essential not only for the protection of lives and livelihoods but also for mobilizing long-term capital and driving sustainable economic growth.

2. The implementation of existing regulatory frameworks, specifically, the Pension Reform Act (PRA) 2014 and the Nigeria Insurance Industry Reform Agenda (NIIRA) 2025 was highlighted as pivotal, that if well-executed, these instruments have the potential to unlock the vast opportunities within the insurance and pension industries, supporting Nigeria’s ambition to build a $1 trillion economy.

3. Participants underscored the importance of political will, strong regulatory capacity, and active collaboration among stakeholders, including operators, regulators, and the public. While both sectors have experienced substantial growth, positioning them as key pillars of financial security and economic resilience, stakeholders agreed that further work is needed to strengthen frameworks at all levels.

4. Despite notable progress, the conference acknowledged emerging challenges that must be addressed, including Environmental, Social and Governance (ESG) integration, cybersecurity threats, artificial intelligence (AI) adoption, and the evolving macroeconomic challenges.

5. A recurring concern was the call for increased public awareness, continued regulatory innovation, and deeper collaboration to ensure the long-term impact of reforms. Regulators reaffirmed their commitment to building stable and sound sectors that will effectively contribute to Nigeria’s economic growth.

6. A significant area of focus was the call for urgent need to expand pension coverage through Micro Pension Plans (MPPs), particularly for Nigeria’s informal sector, which accounts for over 90% of the employed population. Of the estimated 84.15 million employed Nigerians as of 2023, only about 6.14 million (7.3%) are in the formal sector and eligible for traditional pension schemes. To address this imbalance, stakeholders emphasized the need to design flexible, inclusive pension products that accommodate irregular income patterns and leverage mobile money platforms, agent networks, and financial literacy initiatives for broader adoption.

7. The National Pension Commission (PenCom) revealed plans to redesign the MPP and introduce “Super Agents” to facilitate contributor onboarding on behalf of Pension Fund Administrators (PFAs). There was also a recommendation to license Micro Pension Fund Administrators with reduced capital requirements to effectively reach informal sector workers in remote areas.

8. Furthermore, stakeholders identified the NIIRA 2025 as a transformative catalyst capable of reshaping the insurance landscape. NIIRA was described as a game-changer that can foster innovation, enable the development of novel products, and enhance consumer protection, while aligning with global best practices tailored to Nigeria’s unique market conditions.

9. Concerns were raised about the persistently low levels of insurance penetration and the underwhelming subscription to the Contributory Pension Scheme (CPS) and MPPs in Nigeria when compared with peer African nations. Industry operators and PFAs were charged to reformulate their operational models and product offerings to better meet public needs.

10. The conference also called for renewed commitment from all actors including regulators, operators, and media to deepen insurance and pension literacy, expand sector coverage, and implement transformative reforms. PenCom and the National Insurance Commission (NAICOM) reaffirmed their readiness to collaborate with NAIPE and other stakeholders to drive education, innovation, and sustainable development in the insurance and pension sectors. In addition, increased investment of pension funds into agriculture was encouraged to support food security and economic resilience.