The issues raised were very deep and fundamental to the very existence of the Industry
I was not surprised at the feedback from NAICOM.
His response was however more self-serving than answering the key fundamental issues that I raised
Granted, I made some errors like in alluding 95% of all premiums leaving the Country
I have been corrected by over 6 Insurance top shots who immediately called that it is only in the aviation and Oil and gas sectors that this is the case
And this even helps my argument. If you look at the N2. 3trillion paid as premiums in 2024, you will see that 68.4% of this amount is attributed to these same Oil and gas and aviation
So what you get is an obtuse industry that can be wiped out with one single claim if there were no international reinsurance buffer
In fact, I have learnt that a massive claim hit the industry recently, leaving it reeling.
Why should a serious industry have only 31.6% of its business attributed to annuities, with over 200 million people?
The Deputy Director spent a good part of his submission hailing the prominence of NAICOM’s Board and directors
Their brilliance can never be in doubt. I know the current chairman and have had dealings with him in the past and cannot by any stretch of imagination doubt his professional astuteness or integrity
But is he well equipped to drive the massive surge that we expect to turn the industry into a mega one dwarfing the banking industry like it is done in other climes?
My answer is a big NO simply because of the ordinances that brought him into power
Why can’t the NAICOM be self-regulated and independent of Government control
Shebi NAICOM was sitting down there and the government took Pensions, Health, and Workman’s compensation and almost took 3rd party regulations
How can a Board that is dependent on the same Government now fight it to preserve the industry
This is why we say that NAICOM’s problem is dual in nature – capacity and undue government interference
If the Government is serious about its N1 trillion economy, it must free up NAICOM so they can be SROs and work independently while the government will go and sit on the altar of providing a secure and brilliant environment for them to thrive
This is not about Omosheyin and his crew as I am being labelled to have an agenda but it’s about speaking truth to power and the truth is that NAICOM as presently constituted cannot for the life of me deliver what is needed to push the industry out of its perennial poor cousin status
Since the reforms I am pushing for, at the NAICOM will not happen in my lifetime as the practitioners remain some of the most lily-livered ever, then we must work with what we have.
What do we have, enforcement?
We must push the government to enforce the six key policy areas very rigorously
What are these areas-
Third Party Motor Insurance
Group Life Insurance
Liability Insurance
Builders Liability Insurance
Occupiers Liability
Health care professional and indemnity insurance
All of these have required legislation like The Nigerian Industry Reform Act and more but enforcement due to a weak regulatory environment makes its enforcement weak and almost non-existent in some areas
Much as I hate to do this, this takes us back to NAICOM and its debilitating weakness in this area
Look at the big four – Leadway, Custodian, NEM and AIICO are big companies in terms of the amount of NNPCL business they carry
Strip that and you will see an image of a plucked chicken – I say this with full respect and this is why Leadway and Custodian are diversifying their risks through the Holdco structure to go into other areas to even things out
I am happy the Deputy Director mentioned Insuretech and I must commend them for this novel addition to the market
InsurTech is a tech platform that would aggregate all stakeholders and throw up a huge marketplace for the industry ensuring better service, especially claims payment is expected to accelerate the push for the industry in the coming years
The Deputy Director in his response also alluded to spotlighting the Minimum Capital Requirement which ensures that underwriters can only cover risks their capital can cover and he also mentioned the increasing relevance of actuaries in the system and for this, I commend them
The fact however remains that for NAICOM to fulfil its obligations to the Nigerian people, it must be independent and front looking other wise, we will continue to have an underperforming industry like we currently have. Simple.
Come and beat me
Duke of Shomolu
Last modified: June 7, 2026
