By Ade Adesokan
As President Bola Ahmed Tinubu approaches the second anniversary of his administration on May 29, 2025, Nigeria stands at a critical juncture of economic transformation that has sent ripples across every sector of the nation’s economy, with the insurance industry emerging as a particularly compelling case study of both challenge and opportunity. The bold economic reforms initiated from the very first days of his presidency have fundamentally altered the operational landscape for businesses, creating new realities that demand both resilience and strategic adaptation.
The removal of fuel subsidies, one of Tinubu’s most consequential early decisions, created immediate shockwaves throughout the Nigerian economy that continue to reverberate today. This policy shift, while painful in its immediate implementation, has begun to yield the intended fiscal benefits that the administration had projected. The savings generated from subsidy removal have been redirected toward critical infrastructure projects and social programs, creating a multiplier effect that has gradually begun to stimulate economic activity across various sectors. For the insurance industry specifically, this policy change represented both a significant challenge and an unexpected opportunity.
Insurance companies initially faced mounting pressure as operational costs skyrocketed alongside fuel prices, affecting everything from vehicle maintenance for field operations to the increased cost of goods and services that directly impacted claim settlements. However, this challenge coincided with a surge in demand for comprehensive insurance coverage as businesses and individuals sought to protect themselves against the increased volatility and uncertainty in the economic environment. Motor insurance premiums naturally adjusted upward to reflect the new reality of higher vehicle operating costs, while property insurance became increasingly valuable as replacement costs rose across the board.
The parallel decision to float the naira has perhaps been even more transformative for the insurance sector than fuel subsidy removal. The currency’s adjustment to market realities created immediate challenges for insurance companies with foreign reinsurance obligations, as their costs in naira terms increased substantially. The naira’s depreciation by approximately 40.9% has particularly impacted the cost of foreign currency-denominated policies, leading to significant inflation in overall insurance revenue as companies adjust their pricing structures to reflect the new economic reality. Yet this same policy has attracted significant foreign investment into Nigeria’s financial sector, with international insurance and reinsurance companies showing renewed interest in establishing or expanding their Nigerian operations. The increased transparency in foreign exchange allocation has eliminated many of the bureaucratic bottlenecks that previously hindered international business relationships in the insurance sector.
Insurance companies have been compelled to implement comprehensive premium rate adjustments to reflect the prevailing economic conditions, ensuring they can adequately cover rising operational costs and claims payouts in an inflationary environment. These adjustments have been necessary not merely for profitability but for the fundamental survival of insurance companies operating in an economy where input costs have risen dramatically across all sectors. The enforcement of compulsory insurance policies has contributed to the upward trajectory of premiums, as insurers seek to maintain financial stability amid persistent inflationary pressures that affect everything from office rent to staff salaries to the cost of imported equipment and technology.
The National Insurance Commission has played an increasingly active role in regulating premium adjustments throughout this period, working to balance the legitimate needs of insurance companies to maintain financial stability with consumer protection concerns in an environment where rising costs of living make insurance coverage increasingly challenging for many Nigerians to afford. This regulatory oversight has become more sophisticated and nuanced, recognizing that blanket restrictions on premium increases could undermine the sector’s stability while uncontrolled increases could make insurance inaccessible to the very populations it is meant to serve.
The administration’s focus on economic diversification has created new insurance opportunities in previously underdeveloped sectors, while simultaneously addressing critical issues affecting Nigeria’s pension systems that directly impact millions of citizens and their families. President Tinubu’s administration has demonstrated particular attention to pensioners under both the defined benefit scheme managed by the Pension Transitional Arrangement Directorate and the contributory pension scheme operating under the National Pension Commission’s oversight. The economic reforms, while creating adjustment challenges, have also generated increased government revenues that have enabled more consistent pension payments and reduced the backlog of outstanding obligations that had accumulated over previous years.
The Federal Ministry of Finance has played a pivotal role in coordinating pension-related expenditures and ensuring that adequate budgetary provisions are made for both current pension obligations and the servicing of accumulated arrears. Under the current administration, the Ministry has worked closely with PTAD to streamline payment processes and improve the regularity of pension disbursements, addressing long-standing grievances from retirees who had experienced irregular or delayed payments. However, the implementation of these improvements has not been without significant challenges, as pensioners under the Defined Benefit Scheme have raised serious concerns over persistent delays in monthly pension payments by the Pension Transitional Arrangement Directorate, alleging systemic inefficiencies and possible corruption within the agency that have undermined the administration’s efforts to provide reliable pension services.
For over five years, pensioners have reportedly endured delays of up to a week or more in receiving their pensions, contrary to a presidential directive issued in 2019 by former President Muhammadu Buhari mandating payments by the 28th of each month. Despite assurances from PTAD, payments to pensioners now occur after the 30th of each month and sometimes extend into the following month, with PTAD attributing these delays to technical issues with Nigeria’s Government Integrated Financial Management Information System. These persistent technical problems have created additional layers of frustration for pensioners who had hoped that the current administration’s focus on systemic reform would resolve these longstanding operational challenges.
The delays have caused undue hardship for pensioners, many of whom rely entirely on these funds for basic needs such as food and medicine, creating situations where elderly retirees must borrow money or depend on family assistance simply to survive while waiting for payments that are rightfully theirs. Beyond payment delays, pensioners have accused PTAD of making illegal deductions from their pensions for union dues, which they argue violate constitutional rights to freedom of association. These deductions reportedly resumed in September 2024 after being halted in 2017 due to disputes among union executives, adding another layer of controversy to an already troubled pension administration process.
Perhaps most concerning are allegations that accrued huge arrears remain unpaid, with pensioners expressing suspicions that these funds may be held in fixed deposits to generate interest for personal gains rather than being distributed to rightful beneficiaries who desperately need these resources. These allegations have prompted pensioners to call directly on President Bola Ahmed Tinubu to investigate PTAD thoroughly and address these issues as part of his Renewed Hope Agenda, viewing presidential intervention as necessary to resolve problems that have persisted across multiple administrations.
The exclusion of pensioners from seven defunct agencies, including NICON Insurance and NITEL/MTEL, from the ₦32,000 palliative payment and pension adjustment increments has created particularly acute difficulties for some of the most vulnerable retirees in the system. These pensioners, many of whom worked for decades in organizations that were once considered stable pillars of Nigeria’s economic infrastructure, now find themselves among the most marginalized groups in the pension system, facing the dual burden of irregular payments and exclusion from relief measures that could provide some respite from the harsh economic realities of the current adjustment period.
The combination of high inflation, delayed payments, and exclusion from palliative measures has created a perfect storm of challenges that have prevented many retirees from enjoying their retirement years as they had hoped and planned. The rising cost of medical care, in particular, has become a source of severe distress for elderly pensioners who face increasing health challenges precisely when their fixed incomes have been eroded by inflation and their access to timely payments has been compromised by technical and administrative difficulties.
The human cost of these systemic challenges extends beyond financial hardship to encompass genuine life-and-death consequences, as some retirees have tragically lost their lives during this period of economic hardship, unable to afford essential medical care or maintain the standard of living necessary for healthy aging. These losses represent not just personal tragedies for families but also a broader failure of the social contract that promised these workers security in their retirement years after decades of faithful service to the nation.
The National Salary, Income and Wages Commission has contributed significantly to pension system improvements by conducting comprehensive reviews of pension structures and recommending adjustments that reflect the current economic realities facing retirees. The Commission’s work has been essential in ensuring that pension calculations properly account for the impact of currency devaluation and inflation on retirees’ living standards, leading to more equitable treatment of pensioners across different categories and employment histories.
The Accountant General’s Office has modernized its pension processing systems during this period, implementing digital platforms that have reduced processing delays and improved transparency in pension administration. These technological improvements have been crucial in managing the complex transition between different pension schemes while ensuring that retirees receive accurate and timely payments regardless of which system governs their particular circumstances.
The Central Bank of Nigeria has facilitated these pension system improvements through its monetary policy framework and banking system oversight, ensuring that pension payments flow efficiently through the financial system and reach beneficiaries without unnecessary delays or complications. The CBN’s role has been particularly important in managing the foreign exchange implications of pension payments, especially for retirees with international banking arrangements or those requiring foreign currency transactions for medical or other essential needs.
These pension system improvements have created ripple effects throughout the insurance sector, as more reliable pension payments have enabled retirees to maintain insurance coverage that might otherwise have lapsed due to financial constraints. The increased certainty around pension income has also made retirees a more attractive market segment for insurance companies developing products specifically designed for older populations, including health insurance supplements and long-term care coverage that complement existing pension benefits.
Manufacturing sector revival, another cornerstone of the Tinubu administration’s economic strategy, has similarly benefited the insurance industry while creating opportunities to address pension-related challenges through increased employment and economic activity. As local production becomes more competitive due to currency adjustments and policy support, manufacturing companies have expanded their operations and correspondingly increased their insurance needs, while also contributing more substantially to the contributory pension scheme through increased employment and higher contribution levels. Industrial insurance, covering everything from machinery breakdown to business interruption, has experienced substantial growth as companies invest in expanding and modernizing their facilities to take advantage of improved market conditions.
The strengthened collaboration between PENCOM and various insurance companies has also created new opportunities for pension-linked insurance products that provide additional security for contributors to the contributory pension scheme. These hybrid products combine pension accumulation with life insurance coverage, offering participants enhanced protection for their retirement planning while generating new business opportunities for insurance companies seeking to diversify their product portfolios in response to evolving market demands.
The technology sector’s continued expansion under Tinubu’s administration has created entirely new categories of insurance demand. Cyber insurance, previously a niche product in the Nigerian market, has become increasingly mainstream as businesses digitize their operations and face growing cybersecurity threats. Professional indemnity insurance for technology companies has also expanded significantly as the sector matures and faces more sophisticated liability exposures.
However, the insurance industry’s growth during this period has not been without significant challenges. The adjustment period following major economic reforms created cash flow pressures for many businesses, leading to some companies reducing their insurance coverage or seeking less comprehensive policies to manage costs. Insurance companies have had to balance the need to maintain adequate coverage for their clients with the reality that many businesses are operating under tighter financial constraints than in previous years. Despite these affordability challenges, the industry has demonstrated remarkable resilience through aggressive marketing strategies and increased adoption of technology in product distribution, helping insurers maintain revenue growth even as individual consumers and businesses face mounting cost pressures.
The deployment of digital platforms and mobile technology has become increasingly critical for insurance companies seeking to maintain market share while managing the cost implications of traditional distribution methods. These technological innovations have enabled insurers to reach previously underserved markets more efficiently while reducing operational costs, though the challenge remains significant for consumers who find it increasingly difficult to afford coverage due to the rising cost of living across all sectors of the economy.
Regulatory developments under the Tinubu administration have also shaped the insurance landscape in meaningful ways, with the most significant being the Insurance Sector Reform Bill that has successfully passed both chambers of the National Assembly and now awaits the President’s assent. This landmark legislation represents a comprehensive approach to modernizing Nigeria’s insurance sector, introducing higher capital requirements for insurance firms that aim to strengthen the industry’s foundation and enhance consumer protection mechanisms. The anticipation surrounding Tinubu’s expected approval of this reform bill has created an atmosphere of optimism among industry stakeholders, who view it as essential for providing a more robust regulatory framework that will encourage both domestic and foreign investment in the sector.
The reform bill’s emphasis on stronger capitalization requirements reflects the administration’s understanding that a well-capitalized insurance sector is fundamental to economic stability and growth. By raising the bar for entry and operation in the insurance market, these regulatory changes are expected to eliminate weaker players while strengthening those companies committed to long-term sustainability and professional excellence. This consolidation effect, while potentially challenging for some existing operators, promises to create a more reliable and trustworthy insurance environment that better serves Nigerian consumers and businesses.
Complementing these structural reforms is the administration’s Renewed Hope Agenda, which has placed particular emphasis on expanding health insurance coverage as a cornerstone of social and economic development. The government has established ambitious targets to dramatically increase enrollment rates while simultaneously improving the quality of care provided through the National Health Insurance Authority. This initiative represents more than just healthcare policy; it embodies a recognition that accessible health insurance is fundamental to economic productivity and social stability.
The National Health Insurance Authority has been revitalized under Tinubu’s leadership, with new mandates to extend coverage to previously underserved populations and improve service delivery standards. These efforts align seamlessly with broader economic policies aimed at fostering financial inclusion and ensuring that insurance plays a more significant role in Nigeria’s overall development strategy. The expansion of health insurance coverage has created substantial new market opportunities for insurance companies while simultaneously reducing the financial burden on families and businesses when health emergencies arise.
The administration’s infrastructure development initiatives have created substantial opportunities for construction and engineering insurance. Major projects in transportation, power generation, and telecommunications have required sophisticated insurance coverage, often involving international syndicates and complex risk-sharing arrangements. These large-scale projects have not only provided immediate business opportunities for insurance companies but have also enhanced their technical capabilities and international relationships.
Regional economic integration efforts under Tinubu’s leadership have opened new avenues for Nigerian insurance companies to expand beyond national borders. The strengthening of economic ties with other West African nations has created opportunities for cross-border insurance business, particularly in areas such as trade credit insurance and transportation coverage for regional commerce.
The social impact of Tinubu’s economic policies has also influenced insurance market development. As income inequality initially widened during the adjustment period, there has been increased focus on microinsurance products designed to serve lower-income populations. This market segment, while challenging from a profitability standpoint, represents significant long-term growth potential as the economy stabilizes and these populations build greater financial resilience.
Looking toward the remainder of Tinubu’s term and beyond, the insurance industry’s trajectory appears increasingly positive despite the challenging adjustment period. The fundamental economic reforms have created a more sustainable foundation for long-term growth, even if the short-term disruption was significant. Insurance companies that successfully navigated the initial reform period have emerged stronger and more competitive, with improved operational efficiency and more diverse product portfolios.
The administration’s success in attracting foreign investment has strengthened the insurance sector’s capital base and introduced new technologies and management practices that enhance the industry’s overall capability. International partnerships have become more common and more substantial, providing Nigerian insurance companies with access to global markets and expertise that were previously difficult to obtain. The administration’s focus on fiscal restructuring and economic stability has created a more predictable business environment that indirectly benefits the insurance industry by reducing systemic risks and improving long-term planning capabilities for both insurers and their clients.
Industry stakeholders have expressed considerable optimism about the trajectory of insurance sector development under Tinubu’s leadership, particularly regarding the expected approval of the reform bill and the continued implementation of health insurance expansion initiatives. The convergence of regulatory modernization, capital strengthening requirements, and expanded health coverage represents a comprehensive approach to insurance sector development that addresses both immediate operational needs and long-term strategic positioning.
As President Tinubu’s administration continues into its second year, the insurance industry stands as a microcosm of the broader Nigerian economy’s transformation, with particularly significant implications for consumers across all socioeconomic levels. The challenges have been real and substantial, requiring significant adaptation and resilience from industry participants, but the consumer impact represents perhaps the most critical measure of the administration’s success in this sector. The Insurance Sector Reform Bill’s introduction of higher capital requirements for insurance firms promises to deliver substantial benefits to consumers through stronger and more reliable insurance providers, significantly reducing the risk of insolvency that has historically plagued some segments of the Nigerian insurance market and ensuring that claims are paid promptly and in full.
The administration’s aggressive push for health insurance expansion under the Renewed Hope Agenda has created unprecedented opportunities for broader population access to healthcare coverage, with enrollment rate increases that could fundamentally transform how Nigerians approach medical care and financial planning. This expansion represents more than policy implementation; it embodies a recognition that accessible health insurance coverage directly correlates with improved medical services and comprehensive financial protection against health-related expenses that have traditionally devastated household budgets across the country.
Yet the consumer experience has been complicated by the broader economic policies that, while necessary for long-term stability, have created immediate affordability challenges that cannot be ignored. The removal of fuel subsidies and foreign exchange liberalization have generated significant inflationary pressures that directly affect the affordability of insurance premiums, creating a paradoxical situation where improved insurance sector stability coincides with reduced consumer ability to access coverage. Many consumers find themselves struggling to maintain existing policies or purchase new ones due to rising costs that extend far beyond insurance into every aspect of daily life.
The floating of the naira has particularly impacted the pricing of imported goods and services related to insurance operations, potentially making coverage more expensive precisely when consumers are least able to absorb additional costs. This creates a challenging dynamic where the very policies designed to strengthen the economy and attract investment simultaneously make essential financial services less accessible to the populations who need them most. The result has been a complex consumer landscape where the quality and reliability of available insurance products have improved even as their affordability has become more challenging for many Nigerian families and businesses.
Despite these immediate affordability challenges, industry experts maintain optimism that policy consistency and continued regulatory improvements will attract substantial additional investment into the insurance sector, ultimately benefiting consumers through better service delivery, more innovative insurance products, and increased competition that should help moderate pricing pressures over time. The long-term effects of these comprehensive reforms may well lead to a more competitive and consumer-friendly insurance market that better serves Nigerian needs while maintaining the financial stability that has been lacking in previous decades.
The insurance industry’s experience during this transformative period demonstrates both the costs and benefits of bold economic reform. While the immediate disruption was significant, the longer-term structural improvements to Nigeria’s economic foundation have created new opportunities and enhanced the sector’s resilience. As the administration continues to implement its economic vision, the insurance industry’s evolution provides valuable insights into how other sectors might navigate and ultimately benefit from the ongoing transformation of Nigeria’s economic landscape.
The story of insurance under Tinubu’s presidency ultimately reflects the broader narrative of Nigerian economic development: a period of necessary adjustment that, despite its immediate challenges, has created the foundation for more sustainable and diversified growth in the years ahead. This transformation reaches its crescendo with President Tinubu’s preparation to unveil a comprehensive 10-year strategic roadmap for the insurance sector spanning from 2024 to 2033, alongside a critical Guidance Note for the Insurance of Government Assets and Liabilities. This landmark initiative represents the culmination of years of deliberate efforts by the National Insurance Commission to address the persistent challenge of low insurance penetration in Africa’s largest economy, coming at a time when Nigeria’s insurance penetration stubbornly remains below two percent despite the sector’s enormous potential.
The upcoming high-profile launch event is expected to convene key stakeholders from across the financial services spectrum, government agencies, and the insurance industry to deliberate on pressing issues and formulate actionable strategies for enforcing compulsory insurance policies and enhancing national safety standards. The timing of this initiative is particularly significant as it builds upon the momentum created by earlier economic reforms and regulatory improvements that have begun to reshape the insurance landscape in fundamental ways.
For decades, NAICOM has spearheaded various regulatory initiatives aimed at modernizing Nigeria’s insurance landscape, progressively introducing e-regulation frameworks, strengthening prudential oversight mechanisms, and championing improved corporate governance practices within the industry. These efforts have yielded incremental gains, with the sector recording an impressive 27 percent growth in premium generation in 2023, reaching the symbolic milestone of ₦1.003 trillion. The non-life segment contributed ₦615.1 billion, growing by 35.1 percent, while the life insurance segment increased by 16.1 percent, demonstrating the sector’s resilience even amid broader economic challenges.
Despite these encouraging statistics, the fundamental challenge of widespread insurance adoption persists, a reality that the new roadmap acknowledges while proposing a holistic transformation built upon seven strategic pillars: regulatory transformation, risk-based capital models, insurance promotion, product diversification, distribution optimization, digitalization, and talent development. This multifaceted approach recognizes that sustainable growth in the sector requires addressing both supply-side constraints and demand-side barriers simultaneously, particularly in an environment where economic reforms have created both opportunities and affordability challenges for consumers.
The government’s role in this ambitious agenda cannot be overstated, as both policymaker and the nation’s largest asset owner, the federal government wields significant influence in shaping the insurance landscape through policy formulation, enforcement of compulsory insurance, and deployment of economic incentives. The introduction of the Guidance Note for the Insurance of Government Assets and Liabilities represents a concrete step toward institutionalizing risk management practices within government operations and leading by example in an era where public sector efficiency has become increasingly important for overall economic stability.
The roadmap’s implementation faces several formidable obstacles that have been exacerbated by the current economic transition period. Deeply entrenched socio-cultural and religious beliefs lead many Nigerians to rely on faith and traditional safety nets rather than formal insurance mechanisms, a mindset that has been reinforced by the immediate financial pressures created by subsidy removal and currency adjustment. Trust issues stemming from historical experiences with delayed or denied claims have fostered widespread skepticism toward insurance companies, discouraging potential policyholders from participating in the market precisely when comprehensive coverage has become more critical than ever.
Economic constraints play a crucial role in this dynamic, as many Nigerians now prioritize immediate financial needs over insurance coverage, viewing it as a non-essential expense in the face of rising costs across all sectors of the economy. The complexity of insurance products, characterized by cumbersome paperwork and opaque terms, further diminishes their appeal to consumers who are already stretched financially and seeking transparent, accessible financial solutions.
Learning from global success stories offers valuable insights for accelerating Nigeria’s progress toward higher insurance penetration. Countries like Taiwan and South Korea have achieved remarkable penetration rates through robust regulatory frameworks, widespread digital adoption, and innovative product offerings that make insurance accessible and relevant to diverse populations. Closer to home, South Africa leads the continent with a penetration rate of 14.27 percent, driven by a strong regulatory environment and widespread adoption of life insurance products that provide both protection and investment opportunities.
Ghana has made significant strides by focusing on microinsurance and mobile-based insurance solutions that make policies more accessible to low-income earners, while India has implemented risk-based solvency regulations, premium financing options, and alternative risk transfer solutions to enhance market stability and consumer trust. These international experiences underscore the importance of regulatory strength, consumer awareness, and digital innovation as key drivers of insurance adoption, lessons that are particularly relevant as Nigeria navigates its current economic transformation.
The roadmap acknowledges these global lessons and proposes targeted interventions to address Nigeria’s unique challenges, embracing digital technologies, simplifying insurance products, and implementing effective consumer education programs to overcome existing barriers and create a more inclusive insurance marketplace. Special attention is given to microinsurance and index-based insurance solutions that cater to the needs of underserved populations, particularly in rural areas where traditional banking and insurance services have historically been limited.
The role of insurance in national development extends beyond financial protection for individuals and businesses, encompassing the mobilization of long-term savings for infrastructure development, provision of risk management expertise that enhances business resilience, and creation of employment opportunities across various skill levels. By facilitating risk transfer and pooling mechanisms, insurance enables economic actors to undertake productive ventures that might otherwise be deemed too risky, thereby stimulating economic growth and innovation in ways that complement the broader structural reforms being implemented across the Nigerian economy.
As Nigeria stands at this critical juncture, the successful implementation of the 10-year roadmap could potentially transform its insurance landscape, elevating the sector’s contribution to GDP and enhancing financial inclusion in ways that support the administration’s broader economic objectives. However, success will require sustained commitment from all stakeholders, including the government, regulators, industry players, and the public, with the roadmap presenting a promising vision whose ultimate impact will depend on effective execution, stakeholder synergy, and adaptive responses to emerging challenges in an evolving economic environment.
With President Tinubu’s impending launch of this strategic initiative, Nigeria has signaled its determination to overcome historical barriers and create a thriving insurance ecosystem that provides meaningful protection to its citizens while contributing significantly to national development goals, representing a natural evolution of the economic reforms that have defined his administration’s approach to building a more resilient and diversified economy for Africa’s most populous nation.
Evaluating President Tinubu’s performance in transforming Nigeria’s insurance industry over his first two years in office warrants a balanced assessment that acknowledges both remarkable achievements and persistent challenges. A comprehensive rating of his administration’s impact on the insurance sector yields approximately 6.5 out of 10, reflecting a moderately successful tenure with significant potential for future improvement. This rating emerges from careful consideration of the administration’s substantial structural reforms weighed against implementation challenges that have affected ordinary Nigerians’ ability to access and afford insurance coverage.
The positive elements supporting this rating are considerable and demonstrate genuine strategic vision in addressing long-term sector development needs. The pending Insurance Sector Reform Bill with its higher capital requirements represents a landmark achievement that will fundamentally strengthen industry stability and enhance consumer protection mechanisms for generations to come. The administration’s comprehensive 10-year strategic roadmap spanning 2024 to 2033 showcases thoughtful long-term planning that addresses the sector’s historical weaknesses while positioning it for sustained growth and international competitiveness.
The impressive 27 percent growth in premium generation reaching the symbolic milestone of ₦1.003 trillion demonstrates the sector’s remarkable resilience under Tinubu’s economic policies, while the Renewed Hope Agenda’s emphasis on health insurance expansion has created unprecedented opportunities for broader population coverage and new market development. The administration’s success in attracting foreign investment has brought international expertise, capital, and technological innovation to the sector, establishing partnerships that enhance Nigeria’s insurance capabilities and global integration.
However, the factors limiting this rating to 6.5 rather than a higher score reflect genuine concerns about the immediate impact of necessary but painful economic reforms on ordinary citizens and pensioners. The administration’s bold currency reform and subsidy removal policies, while economically sound in the long term, have created significant affordability challenges that have made insurance coverage less accessible precisely when comprehensive protection has become more critical than ever.
The 40.9 percent naira depreciation and fuel subsidy removal have inflated insurance premiums during a period when citizens can least afford additional financial burdens, creating a challenging paradox where the sector’s quality, stability, and international competitiveness have improved substantially while accessibility has decreased for many Nigerian families and businesses struggling with the broader economic adjustment.
Perhaps most concerning for the overall assessment are the persistent challenges in pension administration that directly impact the insurance ecosystem and reflect broader governance implementation gaps. The ongoing PTAD delays in pension payments, the exclusion of pensioners from defunct agencies including NICON Insurance from relief measures, and the serious allegations surrounding the huge unpaid pension arrears represent significant governance failures that undermine confidence in financial sector management and affect the very populations that insurance products are meant to protect.
The rating of 6.5 out of 10 acknowledges that President Tinubu’s administration has successfully laid solid foundations for a more robust, internationally competitive insurance sector through comprehensive regulatory modernization, strategic capital strengthening requirements, and thoughtful long-term planning that addresses historical weaknesses in the Nigerian insurance landscape. The structural reforms implemented during his tenure represent genuine progress toward creating an insurance sector capable of supporting national development goals while providing meaningful protection to citizens and businesses.
Nevertheless, the administration must better balance its reform ambitions with immediate consumer needs and governance effectiveness to achieve its full potential in transforming Nigeria’s insurance landscape. The challenge moving forward lies in ensuring that the impressive structural improvements translate into tangible benefits for ordinary Nigerians while maintaining the momentum of regulatory and market development that has characterized these transformative first two years in office.
-Ade Adesokan is a public affairs commentator
