Joy Agwunobi
The National Insurance Commission (NAICOM) has highlighted the immense potential that the African Continental Free Trade Area (AfCFTA) holds for Nigeria’s insurance industry, calling on sector players to seize the opportunity for expansion and growth.
According to NAICOM, the elimination of trade barriers under AfCFTA presents a unique chance for insurance firms to develop cross-border products, catering to businesses operating across multiple African countries. This, the Commission noted, could make Nigerian insurers more attractive to multinational clients seeking comprehensive coverage across the continent.
Speaking at a workshop organised by the Nigerian Insurance Industry Committee on AfCFTA in Lagos, Olusegun Omosehin, commissioner for insurance and chief executive officer of NAICOM stressed that the agreement could open doors for foreign investment, strengthen the industry’s competitiveness, and drive product innovation.
He urged industry stakeholders to strategise, collaborate, and embrace innovative solutions to position Nigerian insurance firms as dominant players in the African market.
Omosehin further pointed out that embracing AfCFTA could facilitate increased foreign direct investment, providing much-needed capital to drive innovation, technology adoption, and capacity building in the sector.
“We are also mindful of the different regulatory frameworks across African countries, which pose compliance and operational challenges,” he stated. “To address this, we are committed to engaging in bilateral negotiations supported by Mutual Recognition Agreements and Most Favoured Treatment principles to ensure a level playing field for Nigerian insurers.”
He also underscored the need for the Nigerian insurance sector to proactively prepare for the changes and opportunities that come with AfCFTA.
“As industry leaders, we must decide whether to relinquish our position as a continental leader or take bold steps to reinforce Nigeria’s dominance in the African insurance landscape by leveraging our strengths to drive growth, innovation, and prosperity,” Omosehin said.
In her remarks at the event, Ekeoma Ezeibe, chairperson of the Nigerian Insurance Industry Committee on AfCFTA, noted that one of the long-term objectives of AfCFTA is to establish a unified African customs union, similar to the European Union (EU). This would involve a common external tariff structure, meaning all goods entering the AfCFTA area would be subject to the same customs duties and regulations.
She further explained that AfCFTA aims to drive industrialisation and economic diversification by fostering regional value chains and boosting manufacturing. This, she emphasised, would create a greater demand for insurance services as businesses expand across borders.
“As AfCFTA works towards harmonising trade and investment regulations across member states, it is crucial for Nigeria’s insurance sector to evaluate the potential opportunities and challenges of a continent-wide regulatory framework,” Ezeibe said.
She pointed out that aligning insurance regulations among participating countries would enhance market confidence, stimulate growth, and ensure a balanced regulatory environment that safeguards consumer interests while fostering industry expansion. Additionally, Ezeibe underscored the importance of establishing a framework that encourages cross-border business activities, facilitates smooth trade in services, and supports the movement of insurance professionals across the continent.
Ezeibe emphasised that, rather than operating within a fragmented and stagnant market, the insurance sector should embrace the shift toward a single, integrated African insurance market. She urged stakeholders to prepare for this transformation, positioning Nigeria’s insurance industry to capitalise on the vast opportunities presented by AfCFTA.
