In a dynamic gathering of financial minds and policy experts, a recent conference spotlighted the pivotal role insurance and pension industries play in fostering economic growth and long-term national stability. The event, held in Abuja and attended by stakeholders from both the public and private sectors, sought to unravel the layers of influence that these industries have on infrastructure financing, capital market development, and social welfare enhancement.
Speakers at the event emphasized that insurance and pensions are not merely financial products, but critical levers for sustainable development. As governments across Africa face budgetary constraints and rising demands for social security, the mobilization of long-term funds through insurance premiums and pension contributions is increasingly viewed as a viable solution to bridge financing gaps and catalyze development.

The Director General of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, in her keynote address, highlighted that Nigeria’s pension assets have grown to over N19 trillion, representing a pool of funds with enormous potential to spur investments in key sectors such as infrastructure, housing, and energy. According to her, the evolution of the Contributory Pension Scheme (CPS) since its inception has not only secured the future of retirees but also provided a robust source of domestic capital.
Similarly, the Commissioner for Insurance, Mr. Sunday Thomas, drew attention to the slow uptake of insurance in Nigeria despite its transformative capacity. He noted that insurance penetration still lingers below 1% of GDP, a figure that falls short of the sector’s potential to stimulate economic productivity and enhance resilience against shocks. “If we want real growth, we need to deepen insurance awareness and uptake,” he stated, “because no economy thrives on uncertainty.”
Several panel discussions at the conference explored the symbiotic relationship between pensions and insurance. Experts explained how a thriving insurance market reduces systemic risk, encourages investment, and builds investor confidence. For instance, insured businesses are more likely to take calculated risks and expand, knowing they have financial cushions in place. This, in turn, fuels employment and GDP growth.
The conference also shed light on the significant role pension funds play in deepening capital markets. By investing in bonds, equities, and other financial instruments, pension fund administrators (PFAs) are not only generating returns for contributors but also supporting the liquidity and depth of financial markets. This ecosystem, the participants noted, is vital for economic diversification and innovation.
Another key theme was infrastructure financing. Speakers emphasized that Nigeria’s huge infrastructure deficit, estimated at over $100 billion, cannot be solved through public spending alone. Pension funds and insurance companies, as institutional investors, are in a unique position to provide long-term capital that aligns with the nature of infrastructure investments. However, they stressed the importance of creating a secure regulatory and investment environment to encourage such fund deployment.
Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization and a keynote speaker via video call, called for “bold policy reforms and transparency in financial governance” to unlock the full power of pension and insurance funds. She argued that with Africa’s young population and growing middle class, the continent has a rare opportunity to reshape its economic narrative if long-term financial instruments are properly harnessed.
Participants also addressed the challenges stifling the growth of both sectors. Issues such as weak enforcement of pension remittances, lack of trust in financial institutions, poor insurance claims handling, and low financial literacy were repeatedly raised. Recommendations included intensifying public education campaigns, enforcing compliance across employers, digitizing operations for better transparency, and enhancing regulatory collaboration.
Representatives from the African Development Bank, International Labour Organization, and private sector insurers echoed the sentiment that partnerships are essential. They proposed joint frameworks that bring regulators, investors, and government agencies together to align goals and share risk more effectively.
The conference concluded with a consensus that while challenges remain, the path forward lies in deliberate action and inclusive policy reforms. The insurance and pension sectors, if strategically positioned and supported, can act as engines of economic resilience and inclusive development.
Ultimately, the event served as both a diagnosis and a roadmap—a call to recognize and harness the untapped capacities of insurance and pension systems in building a stronger, more equitable Nigerian economy. The participants agreed that now is the time to move from dialogue to implementation, ensuring that these vital sectors contribute more visibly and effectively to the nation’s development agenda.
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