Ime Akpan
The managing director and chief executive officer of emPLE Life Assurance Limited, Mr Rantimi Ogunleye, has said that insurance can be the enabler for Nigeria’s attainment of the $1tn economy by 2030 but the sector has to wean itself off playing a peripheral role to a central driver of economic resilience and investment confidence.
Oguneye stated this in his paper entitled “The strategic place of insurance in the achievement of one trillion dollar economy for Nigeria: Claims payments and customers feedback’ presented at the 2025 annual conference of Finance and Business Online Publishers (FIBOP) held in Lagos under the theme ‘Leveraging technology innovations, tax reforms and opportunities in renewable energy and agriculture to achieve $1 trillion economy.’
Represented by the executive director (technical), Mr Jolaolu Fakoya, the chief executive called for a sector-wide mindset shift, urging policymakers, investors and industry leaders to treat insurance not merely as a financial product, but as a strategic enabler of national development.
“Insurance is more than numbers; it is the confidence to build, invest and grow. If we get it right, we won’t just contribute to GDP—we will help safeguard it,” Ogunleye stated.
Despite its current GDP contribution of just over $1 billion—translating to less than 1% penetration, insurance, he argued, underpins critical sectors such as agriculture, oil and gas, real estate, logistics, and construction.
As an illustration, Ogunleye pointed to Dangote’s $20 billion refinery, saying such capital-intensive ventures are only possible with robust insurance coverage providing the risk buffer necessary for investment.
He stressed that insurance must be recognised as a cornerstone of economic continuity and stability.
“Insurance is no longer a luxury or afterthought—it is a foundational component of Nigeria’s economic infrastructure. As the country pursues its ambitious goal of becoming a $1 trillion economy by 2030, the role of insurance must evolve from a passive financial instrument to an active enabler of investment, productivity, and resilience.
“Though the sector currently contributes less than 1% to GDP, it underpins virtually every industry, from agriculture to oil and gas, construction to commerce. The recent passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 marks a turning point, institutionalizing risk management through mandatory coverage across key sectors.
“From farmers to fintech founders, from construction firms to cargo carriers, insurance allows stakeholders to operate with reduced exposure to risk. It creates the resilience that keeps the economic engine running,” he stressed.
Ogunleye also identified persistent structural barriers stalling the industry’s growth—including low consumer trust, poor awareness, and deep-rooted cultural skepticism, especially surrounding claims payments. He emphasized the need for transparent communication, simplified policy language, and consistent, high-integrity claims settlement practices.
“Claims payment is the strongest form of public relations in insurance. It builds trust better than any ad campaign ever could,” he stated.
A major highlight of Ogunleye’s presentation was the recent passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025—a legislative milestone mandating compulsory insurance across key sectors, including public buildings, infrastructure projects, trade, and professional services.
Calling the Act a “landmark step,” he noted that it institutionalizes risk management as a prerequisite for economic activities and introduces enforcement mechanisms to ensure compliance.
“This reform aligns the insurance sector more directly with Nigeria’s development priorities. It’s a signal that risk management is now a national imperative,” he noted.
Still, Ogunleye warned that legal mandates alone are insufficient, noting that reaching the informal sector where most Nigerians live and work requires innovative, low-cost, and accessible products tailored to daily realities.
“It is hard to sell a policy to someone who’s worried about their next meal. Affordability and access must be front and centre,” he noted.
Ogunleye urged a multi-stakeholder coalition involving regulators, insurers, fintechs, and community leaders to drive penetration beyond urban centers and salaried workers.
He called for bold thinking, digital inclusion, and behavioral research to design insurance solutions that reflect the socio-economic dynamics of Nigeria’s diverse population.
“The future of Nigeria’s economy won’t just be built with steel and cement, but with trust, protection, and resilience. Insurance must be a pillar—not an afterthought—of our $1 trillion ambition,” he added.
