The Commissioner for Insurance at the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, and the President of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa, have emphasized the crucial role of a robust insurance sector in facilitating large-scale infrastructure projects such as the Dangote Refinery and the Lekki Deep Sea Port.
Speaking at the LCCI Insurance Group’s “2025 Insurance Stakeholders’ Consultative Forum”, themed “Role of Insurance in Economic Recovery”, both leaders underscored the importance of insurance in enabling investors to undertake ambitious projects in Nigeria’s economy.
The Insurance Sector as an Investment Enabler
Mr. Idahosa highlighted the often-overlooked role of insurance in securing major investments, stating:
“Many Nigerians do not realize that without insurance, projects like the Dangote Refinery and the Lekki Deep Sea Port would not have been possible. Investors would not commit funds without appropriate insurance safeguards.”
He explained that large-scale infrastructure projects, while critical to economic revitalization, also carry substantial risks. The insurance industry plays a vital role in mitigating these risks, allowing both the government and private enterprises to invest confidently in sectors such as energy, transportation, housing, and telecommunications.
“By providing coverage for construction, operational risks, and liabilities, insurers contribute directly to national development and economic expansion,” he added.
Echoing this sentiment, Mr. Omosehin stressed that the presence of a strong insurance sector is a fundamental requirement for economic stability and risk management.
“People hear about major investors, but they often overlook what keeps them standing. The insurance industry absorbs these risks, allowing businesses to operate and grow. This is what makes us indispensable to economic stability, risk management, and wealth protection,” he said.
Addressing Misconceptions About the Insurance Industry
During the forum, Mr. Omosehin also challenged the perception that Nigeria’s insurance sector contributes minimally to the country’s GDP compared to its counterparts in other regions. He asserted that such claims are based on flawed statistical comparisons.
“The misconception arises from an unfair comparison. In many countries, the insurance sector includes pensions, insurance, and health insurance. However, in Nigeria, pension and parts of health insurance are excluded, leaving only core insurance figures for evaluation. This creates a misleading picture,” he explained.
According to Omosehin, data indicates that Nigeria’s insurance sector has consistently outpaced the national economic growth rate since 2019, even during the COVID-19 pandemic.
“The Nigerian insurance market has grown at a rate higher than national output over the past five years. Even during the pandemic, we achieved growth exceeding the national economy’s rate,” he emphasized.
Strong Growth in the Insurance Sector
Omosehin provided statistical evidence to support his claim, highlighting steady growth in Nigeria’s insurance industry:
- 2019: 19.2% growth (N508.2 billion market size)
- 2020: 1.3% growth (N514.6 billion)
- 2021: 22.7% growth (N631.4 billion)
- 2022: 25.1% growth (N789.6 billion)
- 2023: 32.1% growth (N1.043 trillion)
- 2024: 51.8% growth (N1.583 trillion)
Looking ahead, he projected that the industry would generate approximately N2.5 trillion in premiums by 2025.
Insurance as a Pillar of Economic Recovery
In his welcome address, Mr. Adeniran Aderinoye, Chairman of LCCI Insurance Group, reaffirmed the industry’s pivotal role in stabilizing Nigeria’s economy.
“As businesses navigate Nigeria’s current economic realities, it is evident that insurance plays a critical role in sustaining growth. Whether in protecting businesses, securing livelihoods, or fostering financial resilience, a well-structured insurance sector is indispensable to national recovery,” he stated.
Conclusion
The discussions at the LCCI forum reinforced the importance of the insurance sector as a backbone of economic progress. As Nigeria continues to pursue large-scale infrastructure projects, ensuring a strong and resilient insurance industry will be key to unlocking sustainable economic growth.