The Nigerian Council of Registered Insurance Brokers (NCRIB) has said Nigeria’s insurance penetration rate could rise significantly if pension assets currently managed under the National Pension Commission (PenCom) were brought back into the insurance ecosystem.
The President of NCRIB, Mrs. Ekeoma Ezeibe, made the assertion on Tuesday during the 2026 Inaugural Annual Insurance Week held at Nnamdi Azikiwe University, Awka.
According to her, pension funds and microinsurance have played a major role in driving insurance penetration in leading African markets such as South Africa and Kenya, while Nigeria continues to lag behind.
What they are saying
Ezeibe noted that pension administration was previously part of Nigeria’s insurance sector before the enactment of the Pension Reform Act, which established PenCom 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 works alongside the National Insurance Commission (NAICOM) in overseeing insurance-related components of the Contributory Pension Scheme (CPS), including the Retiree Life Annuity (RLA) and the Group Life Insurance Policy (GLIP).
According to Ezeibe, Nigeria’s insurance penetration remains below 1%, compared to nearly 12% in South Africa and more than 7% in Kenya.
More insights
The NCRIB President also highlighted microinsurance as another critical avenue for expanding insurance coverage across the country.
She observed that Nigeria was slow to embrace microinsurance but noted that recent efforts by NAICOM to license dedicated microinsurance operators are helping to bring low-income earners into the insurance system.
The target market includes artisans, farmers, petty traders, food vendors, and other underserved segments of 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.
Technology and awareness remain key challenges
Ezeibe identified limited adoption of technology and low public awareness as major factors hindering insurance growth in Nigeria.
She argued that the industry has yet to fully leverage digital technologies that have transformed insurance distribution and service delivery globally.
- “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 stressed the need for greater public education on the value of insurance, noting that misconceptions about insurance continue to discourage participation.
- “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.
What you should know
The remarks come as Nigeria’s pension industry continues to record steady growth.
According to the latest data from PenCom, total pension fund assets rose to N29.52 trillion in March 2026, driven largely by gains from equities and Federal Government securities.
The figure represents an increase from N29.43 trillion recorded in February 2026 and N28.04 trillion in January, underscoring the continued expansion of the country’s pension asset base.
Industry stakeholders believe that improving insurance awareness, leveraging technology, expanding microinsurance coverage, and strengthening collaboration between the pension and insurance sectors could play a significant role in deepening insurance penetration and financial inclusion across Nigeria.
