How Insurance, Pension Contribute To Nigeria’s Economic Growth – Expert

L-R: Keynote Speaker and Managing Director, APT Securities and Funds Limited, Mallam Kasim Garba Kurfi; Director General, Nigerian Insurers Association (NIA), Mrs. Yetunde Ilori, Mr. Larry Ademeso, Managing Director, Custodian Life Assurance Limited, representative of Mr. Wole Oshin, Group Managing Director, Custodian Group, Chairman of the occasion; Mrs. Nkechi Naeche-Esezobor, Chairperson, Nigerian Association of Insurance and Pension Editors (NAIPE); Edwin Igbiti, President, Chartered Insurance Institute of Nigeria (CIIN); Ms. Prisca Soares, former Secretary General, African Insurance Organization (AIO) and  Mr. Shola Tinubu, Managing Director, Scib Insurance Brokers at the 8th NAIPE Annual National Conference in Lagos on Thursday, September 7, 2023.

Finance expert and Managing Director/Chief Executive Officer APT Securities and Funds Limited, Mallam Kasim Garba Kurfi has highlighted how insurance and pension sectors are contributing to the sustenance of Nigeria’s economic growth.

He said that the insurance and pension sectors are the engine of growth of the Nigerian economy maintaining that the role played by the two institutions in sustaining economic growth left no one in doubt that they are the vehicle that drives the nation’s economic development.

Kurfi, who stated this while delivering the theme paper “Role of Insurance and Pension Sectors In Building Sustainable Economic Growth Under The New Government,” at the 8th Annual National Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos said insurance and pension sectors today stand as engines for sustainable economic growth and forces to reckon with in every economy.

Kurfi therefore called on the present administration in the country to put in place enabling policies and laws that support the survival of the sectors for them to continue to contribute to the national growth.

Kurfi, while highlighting the contributions of the two sectors to the national economy said, “There is over N2.5 trillion assets managed by the insurance institution in Nigeria as of 31st December 2022.

“While there is over N16.6 trillion assets managed by the Pension Fund Administration as at 31st December 2022, the combination of the two institutions has a total asset of over N19 trillion. The role played by the two institutions in sustaining our economic growth left no one in doubt that they are instruments for most of the economic development

“Over N726 billion in premiums paid in the year 2022 according to the National Insurance Commission, while the industry also paid over N318.1 billion in claims to its customers within the same period. This is a remarkable achievement in comparison with 3.5% growth of Gross Domestic Product (GDP).”

He said insurance institutions give security to the future of the common people and aid economic growth upon happenings or occurence of specific events or disasters.

“Insurance represents promise of the future compensation in case of specific losses or in exchange for periodic payment called premium.

“Managing risk is very important for companies dealing with money or equivalent. The insurance industry promotes National development through wealth creation or protection. It primarily hedges against risk or contingent or uncertain loss.”

On pension, he said, “The contribution of pension funds that run over N16 trillion is pronounced in all phases of life. Many sectors of the economy benefit from excess funds that look for alternative ways to invest such as FGN SUKUK, GREEN BOND, and Infrastructures Bond, among many others.”

Kurfi said Pension ensures that every worker receives his/her retirement benefit as at when due. Ensure workers save in order to cater for future liability and old age. Provide long-term finance for the real sector. Stimulate the development of the capital market.

While condemning those agencies and institutions clamouring to exit Contributory Pension Scheme (CPS), Kurfi enjoined the government at all levels to discourage such moves for the interest of the Pensioners and the nation’s economy.

He said the contribution of insurance and pension sectors towards economic development is imminent and can be seen especially in driving the nation’s financial inclusion project.