The Managing Director/Chief Executive Officer of Arthur Stevens Asset Management, Mr. Olatunde Amolegbe, has urged operators in the insurance and pension sectors to design strategies that will bring Nigeria’s vast informal sector under coverage.
Speaking at the 10th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos, themed “Strengthening Pension and Insurance Framework for Better Economy”, Amolegbe noted that the informal sector accounts for about 70 million workers in Nigeria.
He stressed that the insurance and pension industries are critical sub-sectors of the financial services industry with huge potential to mobilize long-term investible funds. However, he regretted that both remain underdeveloped due to poor public awareness, lack of trust, and low confidence.
Citing statistics, Amolegbe observed that only 26.3% of Nigerian workers had access to pension plans and health insurance in 2023, while voluntary micro-pension adoption remained weak. As of December 2024, only 172,936 workers had registered under the micro pension scheme, despite six years since its introduction.
On insurance penetration, he highlighted Nigeria’s rate of less than 1%, far below South Africa’s 11.54%, Namibia’s 7.41%, Morocco’s 4.10%, Kenya’s 2.25%, and the global average of 6.8%.
To change this trend, Amolegbe emphasized the need for operators to first rebuild public trust and confidence. He also recommended the use of modern technology to simplify enrollment for informal sector workers, alongside the establishment of micro PFAs in grassroots communities.
He further urged insurance operators to leverage the publicity around NIIRA 2025 to deepen financial literacy among young Nigerians and promote a culture of savings through insurance and pensions.
