Nigerian insurance penetration remains low due to pension exclusion, lack of technology, and public ignorance

The Nigerian Council of Registered Insurance Brokers NCRIB has identified several factors contributing to the low insurance penetration in Nigeria, including the exclusion of pensions and micro insurance drivers, insufficient technology adoption, and public ignorance. Mrs. Ekeoma Ezeibe, President of NCRIB, highlighted these concerns at Nnamdi Azikiwe University during the 2026 Inaugural Annual Insurance Week. She noted that Nigeria's insurance penetration is below one percent, significantly lower than South Africa's nearly 12 percent and Kenya's over 7 percent. Ezeibe explained that in South Africa and Kenya, pensions and micro insurance are major drivers of penetration. In Nigeria, however, pension funds were separated from insurance with the introduction of the Pension Reforms Act and are now managed by the National Pension Commission. She suggested that if these pension funds were integrated into the insurance net, Nigeria's penetration rate would increase substantially. Additionally, Ezeibe pointed out that Nigeria has only recently begun to focus on micro insurance, with the National Insurance Commission licensing micro insurance companies to cater to financially excluded individuals like artisans, farmers, and petty traders. The lack of full technology adoption, which offers ease of business, speed, and efficiency, was also cited as a reason for low penetration. Furthermore, Ezeibe stated that ignorance, not necessarily poverty, contributes to the challenge, as even we