The Nigerian Council of Registered Insurance Brokers has said Nigeria’s insurance penetration could increase significantly if pension assets currently under the management of the National Pension Commission were reintegrated into the insurance sector.

The NCRIB President, Mrs. Ekeoma Ezeibe, stated this on Tuesday at the 2026 Inaugural Annual Insurance Week held at Nnamdi Azikiwe University, Awka.

According to her, pension funds and microinsurance have been key drivers of insurance penetration in leading African markets such as South Africa and Kenya, while Nigeria continues to trail behind.

Ezeibe noted that pension administration was once an integral part of Nigeria’s insurance industry before the enactment of the Pension Reform Act, which created the National Pension Commission as the regulator of pension assets.

“Pension, which used to be part of insurance in Nigeria, is now excised with the introduction of the Pension Reform Act and is now domiciled with the National Pension Commission,” she said.
“If you look at the trillions of naira currently held in pension funds under PenCom, you can imagine the impact if those assets were brought into the insurance net. Insurance penetration in Nigeria would rise significantly, similar to what is obtainable in South Africa and Kenya.”

PenCom currently collaborates with the National Insurance Commission in regulating insurance-related aspects of the Contributory Pension Scheme, including the Retiree Life Annuity and the Group Life Insurance Policy.

Ezeibe said Nigeria’s insurance penetration remains below one per cent, compared with nearly 12 per cent in South Africa and over seven per cent in Kenya.

The NCRIB President also identified microinsurance as a key driver of insurance penetration, noting that it offers significant potential for expanding coverage across Nigeria.

She said the country was initially slow to adopt microinsurance but added that recent efforts by NAICOM to license specialised microinsurance operators are helping to extend insurance services to low-income earners.

According to her, the target market includes artisans, farmers, petty traders, food vendors and other underserved groups within the economy.

“When you bring all these groups into the insurance safety net, you begin to realize that little drops of water can indeed make a mighty ocean,” she said.

Ezeibe identified low public awareness and limited adoption of technology as key obstacles to the growth of insurance in Nigeria.

She said the industry has not fully harnessed digital technologies that have transformed insurance distribution and service delivery in many parts of the world.

“Nigeria has not fully employed technology, which is now globally accepted because of its ease of doing business, speed, and efficiency,” she said.

She also emphasised the need for increased public awareness of the benefits of insurance, noting that persistent misconceptions about the industry continue to discourage many Nigerians from taking up insurance policies.

“You hear people say God is their protector. Yes, God protects, but the same God has given us intelligence to take care of ourselves. That is why awareness creation on insurance is very important,” she added.