The Nigerian Insurers Association (NIA) has urged regulatory agencies and industry participants to work together more closely to take full advantage of the economic opportunities offered by the African Continental Free Trade Area (AfCFTA) and increase Nigeria’s insurance presence throughout the continent.
Speaking at the association’s quarterly media briefing in Lagos on Tuesday, NIA Chairman Kunle Ahmed stressed the importance of regulatory harmonisation among African countries.
He stated that streamlining insurance regulations across the continent would help eliminate operational barriers, simplify cross-border service delivery, and enable Nigerian insurers to enter and compete effectively in new markets under the AfCFTA agreement.
Ahmed advocated for stronger collaboration with regulators in establishing a cohesive legal framework to guide insurance activities across Africa’s diverse jurisdictions.
“Greater cooperation with regulators is essential. A unified legal framework will guide operations across multiple territories, allowing insurers to maximise the benefits of AfCFTA,” he said.
To ensure successful market entry and compliance, Ahmed encouraged insurers, brokers, and loss adjusters to familiarise themselves with the regulatory landscapes of various African countries.
He explained that the Nigerian insurance industry is actively positioning itself to become a leading force on the continent, with preparations underway to leverage AfCFTA’s advantages.
Highlighting ongoing initiatives, he noted that the National Insurance Commission (NAICOM) has been engaging with other African regulatory bodies to foster cross-border insurance cooperation.
In May 2022, NAICOM inaugurated the NII-AfCFTA Committee to steer Nigeria’s strategic engagement with the trade pact.
Since then, the committee has hosted several awareness sessions tailored to insurers, brokers, and adjusters, focusing on the opportunities and challenges linked to AfCFTA.
A central aspect of the initiative is the creation of bespoke insurance solutions for companies operating across multiple African territories. These products, which include cover for trade, investment, and multinational activities, are aligned with the AfCFTA’s Trade in Services Protocol, which aims to enhance regional financial integration.
Ahmed confirmed that Nigerian insurers are actively exploring new ventures to establish a physical presence in other African countries, enabling direct access to untapped markets.
He further called on industry operators to improve service delivery, maintain high professional standards, and prioritise customer satisfaction to remain competitive on a continental scale.
He also referenced the proposed capital increase under the Insurance Reform Bill, noting that such reforms would place Nigerian insurers among the most well-capitalised in Africa, thereby bolstering their capacity for risk underwriting and spurring growth.
Ahmed underscored the need for capacity development, particularly in areas such as underwriting, claims management, and risk assessment, which he described as vital for operating in a more interconnected African insurance environment.
He further stressed the critical role of digital innovation and cybersecurity in facilitating cross-border transactions and delivering efficient customer service across different regions.
In closing, Ahmed affirmed that AfCFTA represents a pivotal opportunity for Nigerian insurers to take a leading role in Africa’s financial integration, drive intra-regional collaboration, and contribute to the continent’s broader economic advancement.
