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Chuks Udo Okonta
The African Continental Free Trade Area (AfCFTA) presents a transformative opportunity for Nigeria and insurance industry to expand into new markets, drive growth and create prosperity, the Commissioner for Insurance/ Chief Executive Officer, National Insurance Commission (NAICOM) Olusegun Omosehin, has said.
He disclosed this at the Workshop for Insurance Companies organised by the Nigerian Insurance Industry Committee of AfCFTA yesterday in Lagos, stating that the workshop theme: ‘Unlocking Opportunities: AfCFTA was a call to action, urging insurance companies to strategize, innovate, and collaborate to ensure competitiveness of the Nigerian insurance industry to enable it capitalize on AfCFTA’s benefits.
The Commissioner who was represented by the Deputy Commissioner Technical NAICOM Dr. Usman Jankara, noted that as companies explore the opportunities presented by AfCFTA, they should acknowledge the immense potential of Nigerian insurance industry.
He submitted that with the right strategy and collaboration, they can unlock new markets, drive economic growth, and improve the lives
of Nigerians.
According to him, AfCFTA is expected to create the largest free trade area in the world, boosting economic growth, trade, investment, and economic integration, adding that for the Nigerian
insurance industry, this is an opportunity to expand the horizons, continually innovate, and position themselves for successful maximization of the benefits.
“Permit me to again reiterate some of the opportunities presented by AfCFTA for Africa and Nigeria, particularly in the financial services sectors. By creating a single, unified market of
over 1.3 billion people and a combined GDP of about $3 trillion, we expect a boost in
economic growth occasioned by increase in trade and foreign investment, among others.
“Interestingly, the World Bank estimates that it could lift tens of millions of people out of poverty by 2035.
In the financial services sector, AfCFTA, especially through Trade in Service, offers opportunities for increased financial integration, innovation, and inclusion. With the free
movement of goods, services, and people, African financial institutions can expand their
operations across borders, increasing access to financial services and promoting economic development.
“There is, however, the need for all stakeholders to remain positive by translating the commitments into actionable outcomes at the national and regional levels,” he said.
To achieve this, he noted that insurance companies must focus on the Schedule of Specific Commitments, particularly Cross
Border Services Trade, Consumption Abroad, Commercial Presence, and Presence of Natural Persons. By removing trade barriers, we can develop cross border insurance products, attract foreign investment and promote economic development.
He stated that 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. This influx of capital can boost the insurance sector by providing the necessary funds for innovation, technology adoption, and capacity building in then industry,” he posited.
“We are also not oblivious of different regulatory environment across various African countries, creating complexities in compliance and operational standards. In this regard, we are committed to bilateral negotiations underpinned by Mutual Recognition
Agreement (based on principle of reciprocity) and Most Favoured Treatment (on National Treatment), among other considerations,” he added.
The Chairperson of Nigerian Insurance Industry Committee AfCFTA Mrs. Ekeoma Ezeibe, said snce the creation of the Committee, the members have been liaising with the National Action Committee on AfCFTA, Nigerian Office for Trade Negotiations, organised enlightenment workshops for the members to appreciate the work before them,, attended so many National Stakeholders Consultative meetings on the Agreed Five Priority Sectors under AfCFTA and workshops to consider offers from various state parties. “We also hold our Committee meetings every two (2) weeks to appraise and plan towards achieving our mandate.
“We have entered a new phase of enlightenment of the operators in our industry. That is why in the past few weeks, you must have been seeing our enlightenment materials on different industry platforms flagged off with the special message to the industry by our Commissioner for Insurance. We have also created social media handles – facebook, Instagram and LinkedIn. Please watch out for the link to the handles on all industry Whatsapp pages today and kindly visit the platforms, our platforms, and share your thoughts with us. It is also because of this that we have organised today’s engagement, a workshop, to enlighten insurance companies on the journey ahead and how to brace up for it.
“The workshops for the insurance broking and loss adjusting companies will come up on the 12th and 20th of March respectively,” she submitted.
She noted that the committee was deliberate in choosing the theme for the workshop – Unlocking Opportunities: AfCFTA & the Nigerian Insurance Industry and that they have chosen an eminent speaker, Tunde Hassan-Odukale to do justice to this.
