NKECHI NAECHE- ESEZOBOR–The National Insurance Commission, (NAICOM), has called on the insurance industry to remove trade barriers in order to benefits from the opportunities in African Continental Free Trade Area (AfCFTA).
Segun Ayo Omoshein, Commissioner for Insurance, NAICOM, disclosed this at AfCFTA Workshop 2025 with the theme: “Unlocking Opportunities: AfCTA And The Nigerian Insurance Industry” held in Lagos yesterday.
According to him by removing trade barriers companies can develop and offer crossborder insurance products, including coverage for businesses operating in multiple African countries, which can enhance the attractiveness of Nigerian insurers to multinational clients.
The Commissioner who was represented by Usman Jankara Jimada, deputy Commissioner Technical, at the commission, said “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 the industry.
“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.
“It is imperative to emphasize that the critical concern remains: our collective preparedness to capitalize on these prospects. As CEOs of insurance Companies and members of the NIA, we must ponder whether we will relinquish our position as a continental leader, allowing other nations to assume the mantle, or whether we will assert our dominance in Africa, harnessing our collective strengths to drive growth, innovation, and prosperity.
“As we move forward, let us recognize the importance of collaboration and mutual recognition agreements. We must work together to address regulatory complexities and ensure a level playing field.
Earlier, Mrs. Ekeoma Ezeibe, Chairman
Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA COMMITTEE), highlighted opportunities that AfCFTA offers, particularly for cross-border expansion and the harmonisation of insurance regulations across the African continent.
According to her the vast potential of AfCFTA, which spans a region with a $3.4 trillion GDP and a population of 1.4 billion people. She pointed out that the sector is poised to experience increased demand for insurance services as regional value chains expand and diversify.
She described AfCFTA “as the largest free trade area in the world, encompassing 54 of the 55 African Union member states. The primary goal of AfCFTA is to foster intra-continental trade, boost investment, and support economic integration across the continent.
She noted that “according to world bank estimates AfCFTA could increase Africa’s income by $450 billion by 2035 and elevate intra-African exports by over 81%. Additionally, the UN Economic Commission for Africa predicts that the African economy could reach a $29 trillion mark by 2050 under the single-market trade agreement.”
