National Wire About Nigerians, Nigerian Business and Other Stories
In the face of mounting economic challenges, key stakeholders in Nigeria’s insurance and pension sectors have been called upon to take significant steps toward contributing to the federal government’s ambition of achieving a $1 trillion economy by 2030.
This appeal was made during an expert panel discussion organised by the Nigerian Association of Insurance and Pension Editors (NAIPE) on October 8, 2024, which featured prominent voices from both industries.
Among the experts on the panel was Adeyemi Sadiku, Executive Director of Parthian Partners, alongside Yetunde Ilori, President/Council Chairman of the Chartered Insurance Institute of Nigeria; Wale Okunrinboye, Chief Investment Officer of Access Pensions; and Dr. Afolabi Olowookere, Managing Director and Chief Economist of Analysts’ Data Services and Resources (ADSR).
The session focused on the pivotal role of the pension and insurance industries in advancing Nigeria’s economic aspirations.
Sadiku emphasized that both sectors need to channel investments into long-term financial tools such as federal government bonds and commercial papers, which can boost the country’s capital markets. He pointed out that it’s not just about pension fund managers investing Retirement Savings Accounts (RSAs); individual investors should also look to broaden their portfolios.
“In order to invest, you need to first save,” Sadiku said, referencing Parthian Partners’ i-invest platform, which offers access to a variety of investment options. His remarks aligned with the overarching theme of the discussion, which highlighted the need for increased domestic and foreign savings to fuel economic growth.
The keynote speaker, Dr. Afolabi Olowookere, echoed Sadiku’s sentiments, asserting that investment—driven by both domestic and foreign savings—is crucial for economic growth. Olowookere underscored the difficulty of achieving the government’s $1 trillion GDP target by 2030, citing the sharp depreciation of the naira, which fell by 71.15% from N461 per dollar in January 2023 to N1,650 per dollar as of August 2024.
Under these conditions, Olowookere projected that Nigeria’s economy could reach $450 billion by 2030, far short of the desired $1 trillion goal.
Olowookere also urged the government to focus on increasing the income levels of the population, arguing that no savings or investment target can be achieved with the current low-income environment, especially given the persistent inflation crisis.
He cited ADSR research, noting that the total assets of the insurance sector, which were estimated at $3.9 billion in 2023, had shrunk to $2.2 billion in 2024 due to naira depreciation.
Projections indicated that Nigeria’s GDP could grow from $265.4 billion in 2024 to $681.9 billion by 2030. However, should the government’s $1 trillion target be met, the total assets of the insurance sector would be expected to soar to $20.5 billion by 2030, a significant jump from the $6.4 billion baseline projection.
The panelists collectively emphasized the importance of channeling investments into Nigeria’s capital markets and the need for long-term planning, as well as the critical role of policy support in driving the country toward its economic goals. As Sadiku concluded, achieving this ambitious target will require a collective effort from all sectors, especially pension and insurance industries, to balance innovation with safeguarding investor funds and ensuring sustainable growth.
Photo Captions:
Pix 1
L-R: Yemi Sadiku, Executive Director, Parthian Group; Akinsola Adeseun, Zonal Head, South West Zonal Office, National Pension Commission (PenCom), Nkechi Naeche-Esezobor, Chairperson, Nigerian Association of Insurance and Pension Editors (NAIPE); Fola Daniel, former Commissioner for Insurance and former Managing Director/CEO, FBS Reinsurance Limited; and Idu Okwuosa, former Managing Director/CEO, Access Pensions;
Pix 2
L-R: Yemi Sadiku, Executive Director, Parthian Group; Idu Okwuosa, former Managing Director/CEO, Access Pensions; Wale Okunrinboye, Chief Investment Officer, Access ARM Pensions; Yetunde Ilori, President/Chairman of Council, Chartered Insurance Institute of Nigeria (CIIN); and Dr. Afolabi Olowookere, Managing Director/Chief Economist, Analysts Data Services & Resources Limited during a panel session themed “Towards a $1 Trillion Economy: Roles of Insurance and Pension Sectors.”
