Why insurance penetration is low in Nigeria – NCRIB

The Nigerian Council of Registered Insurance Brokers has identified exclusion of pensions and micro insurance drivers, lack of technology as well as ignorance as reasons for low insurance penetration in Nigeria. 2026 Inaugural Annual Insurance Week at NAU, Awka on Tuesday

The President, NCRIB, Mrs Ekeoma Ezeibe, raised the concerns on Tuesday at Nnamdi Azikiwe University, Awka, Anambra State during the 2026 Inaugural Annual Insurance Week.

She regretted that insurance penetration of other countries, including South Africa and Kenya were far higher than that of Nigeria.

According to her, while Nigeria’s insurance penetration is below one percent, that of South Africa is nearly 12 percent whereas Kenya is above 7 percent.

“But to be realistic, looking at South Africa and Kenya vis-a-vis their insurance market, and the drivers of their insurance penetration, you discover they are mostly pensions and micro insurance.

“But in Nigeria, pension which used to be part of insurance in Nigeria, is now excised with introduction of Pension Reforms Act and now domiciled with the National Pension Commission.

“If you check how many trillions that are domiciled from Pension Funds with PenCom, you can imagine what will happen if it is brought into the insurance net in Nigeria.

Ezeibe noted that if pension funds are brought into the Nigerian insurance net, insurance penetration would have shot up just like that of the South African and Kenyan markets.

“Another driver in other countries are micro insurance. Yes, Nigeria hasn’t paid attention to micro insurance until later.

“As a result, the National Insurance Commission which is our regulator now started licensing micro insurance companies so they can take care of those not financially included in the insurance safety net.

“The micro insurance companies have been licensed to underwrite businesses from the low income generators like the artisans, farmers, food vendors, petty traders and others.

“When you congregate all these people into the insurance safety net, you can then appreciate that little drops of water can really make a mighty ocean.

“Another reason for low insurance penetration is because Nigeria has not fully employed technology which is now globally accepted due to its ease of doing business, speed and efficiency characteristics.”

While identifying ignorance as another reason for the insurance low penetration challenge, Ezeibe argued that ignorance does not necessarily stem from poverty, saying even certain rich individuals could largely be ignorant as well.

“You hear people say God is their protector. Yes, God does protect. But the same God has given us intelligence for us to apply it towards taking care of ourselves. This is why awareness creation on insurance is very important,” she added.

The Vice-Chancellor (VC), Nnamdi Azikiwe University, Prof Ugochukwu Anyaehie, praised the faculty for attracting stakeholders in the insurance industry, saying the move would further improve the institution’s growth.

The vice-chancellor, represented by Deputy Vice-Chancellor, Academics, Prof Alex Asigbo, expressed the University’s willingness to partner with the organisation, including provision of institutional support.

Earlier, Programme Coordinator, Insurance Programme, Department of Banking and Finance, Faculty of Management Sciences, Prof Victor Okonkwo described the theme: “Insurance for All: Driving Inclusion, Innovation, and Trust” as both a timely reflection of market demands and an urgent blueprint for national development.

“Our theme for this week is also entirely synchronised with our Insurance programme vision: to advance knowledge-driven, trust-based and technology-enabled risk management solutions.

“These solutions will enhance financial security and sustainable economic development across Nigeria and the continent,” he added.