Sunday Ojeme 
During the outgoing year, activities in the insurance and pension sectors were quite overwhelming as the period marked a drastic change in the leadership of the regulatory bodies. SUNDAY OJEME reports
For the insurance sector, the change in leadership and coming onboard of the new Commissioner for Insurance, Mr. Olusegun Omosehin, did not take observers and stakeholders by surprise as the tenure of the former CfI, Mr. SundayThomas, had ended.
Although he performed excellently well and was expected to be retained, the Preaident, Bola Ahmed Tinubu, thought otherwise, and decided to inject new hands into the system by constituting a completely new board with Omosehin as the Commissioner.
Similar development played out at the National Pension Commission (PenCom), which also witnessed a change of baton with the emergence of Omolola Oloworaran as the new Director-General of the Commission.
Since their emergence, both regulators have been introducing some reforms to beef up the images of the organisations.
On his part, the Commissioner for Insurance, despite engaging in major regulatory routine, has been meeting with various agencies of government to create more awareness on the need to take the insurance of government assets more seriously.
In one of the numerous engagements, precisely to the Nigeria Social Insurance Trust Fund (NSITF), he said the purpose of the visit was to discuss areas of collaboration between the Commission and the NSITF to deepen insurance penetration, harnessing the benefits of both conventional and social insurance, data sharing and analytics, capacity building and training, creating awareness and advocacy, driving compliance with Insurance requirements and many more.
Thus, the two agencies agreed to set up a joint committee to drive the collaboration, harness the contribution of insurance generally to national output and also boost growth potentials of the insurance sector in Nigeria.
In the same vein, Omosehin played host to a delegation from the Nigerian Factoring Working Group in his office. The delegation made up of members from NEXIM Bank, CBN, GIZ and AfreximBank was led by Mr. Hope Yogo.
As part of his seriousness to instill confidence in the public and eliminate distrust, he demonstrated this by ensuring that annuitants, who were owed by African Alliance Insurance, were settled just as the Commission took over the management of the company. Another significant impact during the year for the industry was the passage of the Insurance Consolidated Bill by the Senate.
The bill, which has been at the National Assembly for a long time, was eventually passed to the delight of insurance practitioners.
The newly passed bill introduces several pivotal provisions aimed at fortifying Nigeria’s insurance industry. Key highlights of the legislation include: Enhanced Capital Requirements: New minimum capital requirements for insurance companies, ensuring they are adequately capitalized to underwrite risks and protect policyholders.
Risk-Based Supervision: Consolidation of the risk-based approach to supervision, enabling regulators to more effectively monitor and manage risks within the industry. Strengthened Consumer Protection: Improved consumer protection requirements, safeguarding the interests of policyholders and promoting transparency and fairness in insurance practices.
Streamlined Regulatory Framework: An enhanced regulatory framework, providing clarity and consistency in the regulation of insurance businesses, and facilitating a more efficient and effective supervisory process.
This achievement comes after years of operating with laws that have failed to keep pace with the country’s evolving economic landscape.
Unlike other sectors that have undergone multiple phases of legislative reforms to reflect current economic realities. Reacting to the passage, the regulator said the Bill would unlock growth, prosperity and potential in the insurance industry.
It said the passage of the Bill marked a significant milestone in the country’s efforts to revamp the insurance industry after nearly two decades.
The Commission believes that the Bill is a game changer for the Nigeria’s insurance industry, and is going to have high positive impact on the contribution of insurance sector to the country’s GDP and economy as a whole.
By consolidating existing insurance laws, the new legislation marks a new era in the ongoing efforts to strengthen the Nigeria’s insurance industry.
The bill provides a comprehensive framework for regulating all types of insurance businesses and ensuring a more robust and effective industry.
PenCom
On the part of the National Pension Commision, it is obviously a new dawn as the new director-general is taking steps to ensure more awareness and wider engagement with every stakeholder.
As it is, the Contributory Pension Scheme, which has been trailed by endless controversies, especially emanating from misunderstanding, appears to be heading to a more stable path.
Oloworaran’s first attempt at dousing real tension was the simple approach deployed at putting an end to the dust raised by annuitants under the troubled African Alliance Insurance.
To ensure results, she went into collaboration with the National Insurance Commission (NAICOM), which yielded the expected result as the annuitants have been paid over N700 million after months of agitations.
During a visit to her by members of the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS), she made it clear that PenCom was collaborating with relevant stakeholders to address issues related to pension increases, accrued pension rights, and other pension liabilities.
She had promised that the non-payment to annuitants under the African Alliance Insurance Company, which was being regulated by the National Insurance Commission (NAICOM) would soon be resolved.
“PenCom is working with NAICOM to resolve the issue and announce a regulatory change that will require all pension funds under annuity to be domiciled with Pension Fund Custodians (PFCs) to prevent similar issues in the future,” she said.
The singular act of working with NAICOM and other stakeholders appears to be the magic wand to finally put an end to the escalating agitations in Nigeria’s pension circle. She made it clear to members of NUP
Another significant impact during the year for the industry was the passage of the Insurance Consolidated Bill by the Senate
CPS that the poor service delivery by any PFA to retirees would not be tolerated. She said that PFAs and PenCom must provide accessible complaint channels to ensure speedy resolution of issues.
With every arrangement in place, the director-general has projected that by the end of the year, the pension assets would be hitting N22 trillion with over 10 million contributors currently listed.
As part of her seriousness to break any form of logjam, the director-general has been engaging stakeholders including retirees, who are directly affected, across the country and making herself available and accessible for advice and possible direction where the need arises.
In an engagement with the media last week, Oloworaran provided further insights into how much she intends to ensure a successful pension programme for the benefit of retirees.
She said that the Pension Industry Shared Service Initiative was in an advanced stage of implementation.
Positive manifestations
“Recently, N44 billion was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023. “Moving forward, we are working with the Federal Government to put in place a sustainable solution that ensures that retirees receive their benefits promptly and without undue stress,” she said.
She said that since assuming office, she and her team had been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimising returns.
She said that they had also been improving benefits and expanding coverage to include more Nigerians, especially those in the informal sector.
Oloworaran expressed passion over the micro-pension initiative, in particular, noting that it is the commission’s way of fostering financial inclusion, no matter how small an earning might be.
She said that the commission intended to use technology to scale the micropension plan. “Technology plays a vital role in driving this inclusion from mobile enrollment to real-time account management,” she said.
She said that PenCom planned to rebrand the micro-pension scheme, and also target onboarding not less than 20 million Nigerians in the informal sector.
Oloworaran acknowledged the role of the media as stakeholders in the success of the pension system As we integrate technology across every aspect of the pension industry, we are paving the way for a future where the CPS becomes more accessible, reliable, and sustainable.
“However, this transformation cannot succeed without your unwavering support as media practitioners. “Your role in amplifying our initiatives and educating stakeholders across Nigeria is essential to achieving this vision,” she said.
She described the ability of the media to inform, educate, and hold institutions accountable as invaluable. “Together, we can ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement,” she said.
Subtle applications
Not left out in her strategy is the consolidation of certificate issuance to private sector operators to clear them for Federal Government contracts.
This is to ensure that employees’ contributions are honestly remitted to their Pension Fund Administrators (PFAs). In effect, she disclosed that PenCom had issued over 38,000 Pension Clearance Certificates (PCC) to organisations that have complied with the rules.
This feat is coupled with the fact that the commission also achieved a major milestone with the launch of the e-Application Portal for the PPC in October.
She said that the initiative replaced the previous manual process, enabling companies to seamlessly apply for and receive PCCs online, significantly enhancing ease of doing business and ensuring compliance.
CIIN
During the year, there was also a leadership change at Chartered Insurance Institute of Nigeria (CIIN), which saw Mrs. Yetunde Ilori, taking over the baton and unveiling a four-point agenda christened ‘EPIC’, which stands for Education; Professionalism; Institutional recognition and Capacity building.
She unveiled the agenda today at a press conference in Lagos, adding that she hopes to restructure the CIIN into a Business School Model for insurance.
Mrs. Ilori, who is coming in as the 52nd President of the institute noted that she had deep-seated desire that gave birth to the theme of her tenure, stressing that she believed with all the stakeholders working together the desire can become a reality.
NIA
Having left the Nigerian Insurers Association (NIA) as the Chairman, Kunle Ahmed, CEO of AXA Mansard, emerged the 26th Chairman of the body. In his acceptance speech, Ahmed called for the support of all stakeholders in the insurance industry to ensure his success.
He expressed gratitude to past chairmen for their foundational work and thanked his colleagues in the Governing Council, member company CEOs, and the association’s Director General, management, and staff.
“I also seek your invaluable support as I pledge my total commitment to the ideals of the Association so that our Association will continue to remain a strong pillar of support to her members.”
Ahmed also announced the appointment of Mrs. Bola Odukale as the new DirectorGeneral/CEO of the NIA, who started her role on May 2, 2024. He requested collaboration from members to help her advance the association.
Last line
From the foregoing, it remains obvious that the outgoing year 2024 marks a significant redirection and consolidation of the two sectors to ensure retirees and the insuring public repose more confidence in the system.
