Expert Urges Immediate Action to Prevent Collapse of Nigerian Insurance Industry

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Dr. Sam Chukwuka Onyeka, Lead Director of Transparent Protection Ltd/GTE,
Delivered a compelling address at a press conference held on Friday, May 3rd, 2024, Abuja, Dr. Sam Chukwuka Onyeka, Lead Director of Transparent Protection Ltd/GTE said that the conference aimed to draw attention the stakeholders to the undisclosed pressing challenges facing the insurance regulation and supervision sector in Nigeria, particularly within the National Insurance Commission (NAICOM).
Dr. Onyeka began by highlighting the significance of the conference, which coinciding with the assumption of office by the new Executive Management of NAICOM. He extended congratulations to the newly appointed board and expressed hopes for a successful tenure.
Challenges at NAICOM:
The address outlined the slow pace of regulatory and supervisory activities at NAICOM since January 2024, citing concerns over inefficiency and potential collapse of the sector. Dr. Onyeka identified longstanding challenges faced by NAICOM, including funding shortages, limited technical capacity, inadequate infrastructure, political interference, and corruption.
Current Situation:
Dr. Onyeka emphasized the gravity of the current situation, with regulatory and supervisory activities at a standstill. He warned that without immediate action, the insurance industry in Nigeria faces imminent collapse. He highlighted the impact of insufficient funding on NAICOM’s ability to fulfill its mandate effectively.
Proposed Solutions:
To address the crisis, Dr. Onyeka proposed urgent reforms, including removing NAICOM from the 50% statutory revenue deduction, staff rationalization, relocating supervisory operations to Lagos, and enhancing IT capacity. He cautioned against increasing the insurance supervisory levy, citing potential negative consequences for policyholders.
Call to Action:
Dr. Onyeka urged the Federal Government and stakeholders to take immediate action to prevent the collapse of the insurance industry. He emphasized the need for collective effort to safeguard the sector and prevent further deterioration of public confidence.
In conclusion, Dr. Onyeka reiterated the urgency of the situation and called for unity in addressing the challenges facing the Nigerian insurance industry. He thanked the audience for their attention and reiterated the importance of collaborative action in saving the industry from collapse.

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