Stakeholders advocate policy compliance in Nigeria’s building insurance sector

Speaking at the just concluded third edition of the Africa Cashless Payment System Conference in Lagos, experts highlighted how inadequate insurance coverage, specifically for public buildings, continues to burden the economy, while advancements in telecommunications are bolstering Nigeria’s shift to a cashless system.

The event, themed “Building Safer Cashless Economy and Business Communities,” brought together leaders who discussed the gaps in building insurance compliance and the role of technology in driving financial inclusion.

Soji Oni, controller of technical at the Nigerian Insurers Association (NIA), explained that the low compliance rate for building insurance remains a significant issue, directly contributing to substantial economic losses.

Oni emphasised the critical role of insurance in mitigating these losses, noting that, as mandated by the Federal Government, every public building should maintain at least two types of insurance: occupier’s liability and fire and special peril cover. “The compliance level of insurance cover on buildings is still low, hence this is why enforcement is very germane,” Oni stated, urging for stricter regulatory measures to improve adherence.

In the area of telecommunications, Aminu Maida, vice chairman of the Nigerian Communications Commission (NCC), highlighted the essential role that telecom infrastructure plays in supporting a cashless economy.

Maida noted that as internet penetration expands, so does the accessibility of mobile financial services, such as mobile money and online banking, which are vital for a thriving digital payment landscape.

“The NCC plays a critical role in advancing telecoms infrastructure to support the digital financial ecosystem and aims to bridge the access gaps across the country,” he stated.

Maida further explained that the National Broadband Plan 2020-2025 seeks to deliver high-speed internet to urban and rural areas, ensuring a stable foundation for Nigeria’s cashless economy.

According to him, the plan aims to provide speeds of 25 megabits per second in urban areas and 10 megabits per second in rural areas, targeting 90 per cent  population coverage and 70 per cent  internet penetration.

The initiative also includes USSD codes for financial services, a critical feature for rural areas without internet access.

Meanwhile, Oluyinka Fayomi, chairman of the Foreign Investment Network (UK), shared her perspective on the transformative power of a cashless system, especially for those historically excluded from formal financial services.

Fayomi highlighted that the “Cashless Lagos” initiative has already shown impressive results by increasing digital transactions and reducing the costs associated with cash handling.

“Across Africa, mobile money has flourished with 548 million registered accounts, proving the continent’s readiness for digital transformation,” Fayomi noted, underscoring how a cashless economy can drive both economic growth and financial inclusion across the continent.