Stakeholders in the insurance and pension industry have been urged to play active roles in financing sectors that are critical to Nigeria’s industrialisation and economic growth.

Speaking at the 9th Nigerian Association of Insurance and Pension Editors (NAIPE) conference in Lagos, the Chief Investment Officer of Access ARM Pensions, Wale Okunrinboye, said that there is a need for pension funds, insurance operators and other key financial stakeholders to collaborate with the government to achieve Nigeria’s ambitious goal of achieving a $1 trillion economy.

Okunrinboye stressed that countries transitioning from underdeveloped to developed economies typically undergo a robust phase of industrialisation, followed by the growth of high-service sectors.

Sadly, Nigeria, like many sub-Saharan African nations, has largely bypassed the industrialisation phase, relying heavily on the services sector.

This gap, he noted, poses a significant challenge in job creation and fostering sustainable economic growth.

According to him, attracting both local and foreign investments is essential for the country to become a fully industrialised economy.

He urged pension funds and other long-term investors, traditionally focused on government securities, to diversify their portfolios into critical sectors that can drive industrialisation.

“To transition into a fully industrial economy, we need to attract investments – some of which should be local and foreign.

This is where pension funds and other long-term investors come in. A large portion of pension fund investments is currently in government securities, but recent discussions have focused on the need to invest beyond government securities as a way to catalyse and develop the economy.

“For long-term investments, pension funds, insurance companies and the broader financial system, it’s time to engage the economy, collaborate with the government, and work with stakeholders to develop financing arrangements that support critical projects. These projects should help Nigeria achieve industrialisation and boost exports,” Okunrinboye said.

The Managing Director/Chief Economist, Analysts Data Services and Resources Limited, Dr. Afolabi Olowookere, advised the government to tinker with the current policies and speed up infrastructure development to encourage more investments if it must realise the $1 trillion ambition.

According to Olowookere, the country’s gross domestic product (GDP) grew from 2.98 per cent in the first quarter of the year to 3.19 per cent in the second quarter, while the forecasts in the short to medium term remained weak.