Nigeria's insurance penetration sits below one percent — while South Africa's is nearly 12 percent and Kenya's is above 7 percent. That gap isn't an accident.

The Nigerian Council of Registered Insurance Brokers (NCRIB) has identified three main reasons for the low numbers: the exclusion of pensions and micro insurance from the insurance net, a lack of technology, and plain ignorance.

NCRIB President Mrs Ekeoma Ezeibe raised the concerns on Tuesday at Nnamdi Azikiwe University, Awka, Anambra State during the 2026 Inaugural Annual Insurance Week.

According to Ezeibe, the biggest driver of insurance penetration in other African countries is pensions. But in Nigeria, pension funds were removed from the insurance system when the Pension Reforms Act was introduced. Those funds are now managed by the National Pension Commission (PenCom), not insurance companies.

"If you check how many trillions that are domiciled from Pension Funds with PenCom, you can imagine what will happen if it is brought into the insurance net in Nigeria," she said.

"If you check how many trillions that are domiciled from Pension Funds with PenCom, you can imagine what will happen if it is brought into the insurance net in Nigeria."

The second driver other countries use is micro insurance — small, affordable policies for low-income people. Nigeria has only recently started licensing micro insurance companies to cover artisans, farmers, food vendors, and petty traders.

"When you congregate all these people into the insurance safety net, you can then appreciate that little drops of water can really make a mighty ocean," Ezeibe said.

Technology is another missing piece. Nigeria hasn't fully adopted digital tools that make insurance easier, faster, and cheaper to buy and manage.

Ezeibe also pointed to ignorance — not necessarily from poverty. She argued that even wealthy people can be ignorant about insurance.

"You hear people say God is their protector. Yes, God does protect. But the same God has given us intelligence for us to apply it towards taking care of ourselves," she added.

The event's theme was "Insurance for All: Driving Inclusion, Innovation, and Trust." Professor Victor Okonkwo, coordinator of the Insurance Programme at the university's Department of Banking and Finance, described it as both a reflection of market demands and a blueprint for national development.

The Vice-Chancellor of Nnamdi Azikiwe University, Prof Ugochukwu Anyaehie, praised the faculty for attracting industry stakeholders and expressed willingness to partner with NCRIB.

  • Nigeria's insurance penetration: below 1%
  • South Africa's insurance penetration: nearly 12%
  • Kenya's insurance penetration: above 7%
  • Pension funds in Nigeria are managed by PenCom, not insurers
  • Micro insurance licensing in Nigeria has only recently begun