Insurance Commissioner, Omosehin Highlights Opportunities in AFCFTA for Nigerian Insurers

The commissioner for Insurance, Mr Olusegun Ayo Omosehin, has highlighted opportunities awaiting Nigerian insurance sector operators in the  African Continental Free Trade Area (AfCFTA) adding that by removing trade barriers, insurers could develop cross-border insurance products, attract foreign investment, and promote economic development.

“With the removal of trade barriers, insurance companies can develop and offer cross- border insurance products, including coverage for businesses operating in multiple African countries, which can enhance the attractiveness of Nigerian insurers to multinational clients. This will also bring about increased investment as it is likely to attract foreign direct investment,” he stated.

Omosehin, who spoke in his opening remarks at a three day workshop on  AFCFTA for insurance companies organised by  the Nigerian Insurance Industry Committee on AFCFTA held in Lagos noted that the influx of capital could  boost the insurance sector by providing the necessary funds for innovation, technology adoption, and capacity building in the industry.

Omosehin harped on the need for insurers to be focused on the schedule of specific commitments, particularly cross border services trade, consumption abroad, commercial presence, and presence of natural persons.

He acknowledged that insurers were not oblivious of different regulatory environment across various African countries, creating complexities in compliance and operational standards.

According to him, regulators were committed to bilateral negotiations underpinned by mutual recognition agreement (based on principle of reciprocity) and most favoured treatment (on national treatment), among other considerations.

“It is imperative to emphasise that the critical concern remains: our collective preparedness to capitalise on these prospects. As CEOs of insurance Companies and members of the NIA, we must ponder whether we will relinquish our position as a continental leader, allowing other nations to assume the mantle, or whether we will assert our dominance in Africa, harnessing our collective strengths to drive growth, innovation, and prosperity” he added.

In her welcome address, the Chairperson of the Nigerian Insurance Industry Committee on AFCFTA, Mrs Ekeoma Ezeibe, said she was happy to share at the maiden enlightenment workshop the opportunities which the AfCFTA presents to the Nigerian insurance industry and crucially, strategies to position the industry to maximise these benefits.

Ezeibe stated further that the workshop would enable the insurers to take measures through NAICOM to strengthen confidence and standards in insurance industry.

“Permit me to begin with what AfCFTA is. To put the scale in proper context, it is helpful to note that it covers an African region with a joint gross domestic product (GDP) of approximately $3.4 trillion and a population of roughly 1.4 billion people. The African Continental Free Trade Area is a free trade area in goods and services encompassing most of Africa. About 54 of 55 African Union member states have signed the framework agreement establishing the world’s largest free trade area to foster greater intra-continental trade and investment, as a means of spurring economic integration and growth in our continent” Ezeibe emphasized.