Insurance Industry Must Transition to Central Role in Nigeria’s $1 Trillion Economy
By prince Benson Davies
The insurance industry in Nigeria needs to shift from a peripheral role to a central driver of economic resilience and investment confidence, according to Mr. Jolaolu Fakoya, Executive Director (Technical) at emPLE Life Assurance Limited. Speaking at the Finance and Business Online Publishers Association (FiBOP) 2025 National Conference, Fakoya emphasized the importance of recognizing insurance as a strategic enabler of national development.
The industry currently contributes less than 1% to GDP, despite underpinning critical sectors such as agriculture, oil and gas, real estate, and construction.
Insurance provides a risk buffer necessary for investment, allowing stakeholders to operate with reduced exposure to risk
Trust in claims payment is essential for building public trust and confidence in the industry.
He emphasize that
The recent passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 is a landmark step towards institutionalizing risk management and ensuring compliance.
investors, and industry leaders must recognize insurance as a cornerstone of economic continuity and stability
Insurers must develop inclusive, affordable, and accessible products that resonate with Nigeria’s informal sector and underserved populations Simplifying policy language, enhancing customer education, and prioritizing transparency in claims settlement are essential for building public trust.
He concluded that
A coordinated effort is necessary to reposition insurance as a strategic development tool central to unlocking growth, safeguarding livelihoods, and achieving Nigeria’s long-term economic ambitions.
The insurance industry has a critical role to play in Nigeria’s pursuit of a $1 trillion economy. By recognizing insurance as a strategic enabler of national development and working together to address the industry’s challenges, Nigeria can unlock its full potential and achieve sustainable economic growth.