By David Akinmola
The National Insurance Commission (NAICOM) has called on underwriting firms to leverage the African Continental Free Trade Area (AfCFTA) to increase insurance coverage across the African market.
The commission revealed this in a recorded video message posted on its X handle, urging insurance companies to expand their footprint outside Nigeria.
Speaking on the development, the Commissioner for Insurance, Olusegun Omosehin, stressed the transformative potential of AfCFTA, the world’s largest free trade area, by participating countries, which commenced trade on January 1, 2021.
According to him, to help insurance firms tap into this market, NAICOM has set up the Nigerian Insurance Committee on AfCFTA, which includes stakeholders from underwriting, brokering, and adjusting sectors.
The committee, led by Barrister Ekeoma Ezeibe, is tasked with raising awareness and ensuring the Nigerian insurance industry is well-positioned to compete across Africa.
“We are fully committed to supporting the committee because we believe in the potential and capability of the Nigerian insurance sector to excel beyond our national borders,” Omosehin stated. “Let us innovate, grow, and prepare to develop beyond Nigeria’s shores.”
Beyond AfCFTA expansion, NAICOM has intensified collaborations with key government agencies to drive insurance penetration and enforcement:
Partnership with FRSC & Police: In February, NAICOM and the Federal Road Safety Corps (FRSC) formed a strategic alliance to enforce compliance with third-party motor insurance policies. This initiative, backed by the Nigeria Police, aims to improve road safety and ensure compliance with existing insurance regulations.
The NAICOM has also partnered with the Fire Service and Nigerian Electricity Management Services Agency (NEMSA) to promote public awareness of insurance benefits and mandatory compliance.
As Nigeria positions itself within AfCFTA’s $3.4 trillion market, NAICOM’s push underscores the importance of innovation, cross-border partnerships, and regulatory compliance in unlocking new growth avenues for insurers.
With AfCFTA opening doors to over 1.3 billion consumers across Africa, industry players now have a golden opportunity to scale their operations and compete on a continental level.
