Cynthia Ezekwe
The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the federal government to reconsider the classification of the National Insurance Commission (NAICOM) as a revenue-generating agency.
NCRIB argues that NAICOM’s primary focus should be on regulating the insurance industry in Nigeria, rather than generating revenue for the government.
Babatunde Oguntade, the president of NCRIB,made the call at a recent retreat organised by the House Committee on Insurance and Actuarial Matters in Lagos.
Oguntade explained that the insurance supervisory fund levy, which is paid by insurance institutions, is meant to fund the regulatory supervision and market development activities of NAICOM. He noted that placing the levy within the Single Treasury Account system, a government account where all federal revenue is paid into, would constrain NAICOM’s ability to perform its role as a regulator, and could have a negative impact on the growth of the insurance industry.
Oguntade highlighted the fragility of the insurance industry in Nigeria and called on lawmakers to encourage the government to exempt NAICOM from the list of revenue-generating agencies. He argued that this would provide a clear mandate for the Commission, and help it to focus on its role as a regulator.
The NCRIB president urged the lawmakers to expedite the passage of the 2022 Consolidated Insurance Bill, which would address a number of shortcomings in the current Insurance Act 2003 and the 1997 NAICOM Act. He argued that the new bill would provide a clear and modernized framework for the regulation of the insurance industry, and would facilitate its growth.
Oguntade highlighted the importance of MDAs budgeting for insurance and following through on implementation. He noted that this would help to increase the industry’s penetration rate, which is currently low at just 1.2 per cent of the country’s GDP.
