Insurers urged to leverage AfCFTA’s potential for sector’s expansion

Stakeholders in the insurance industry have advised operators to leverage the African Continental Free Trade Area (AfCFTA) for expansion across the continent.

This was canvassed at a workshop themed ‘Unlocking Opportunities: AfCFTA and the Nigerian Insurance Industry’ in Lagos.

Speaking at the workshop, the Deputy Commissioner, Technical, Dr Usman Jankara, who represented the commissioner for Insurance stressed the potential of AfCFTA for the sector.

AfCFTA is expected to create the largest free trade area in the world, boosting economic growth, trade, investment and economic integration.

Jankara said: “For the Nigerian insurance industry, this is an opportunity to expand our horizons, continually innovate and position ourselves for the successful maximisation of the benefits.”

With AfCFTA creating a single market of over 1.3 billion people and a combined GDP of about $3 trillion, he emphasised that financial services, particularly insurance, stand to benefit from increased integration and cross-border operations with access to new markets.

“By removing trade barriers, we can develop cross-border insurance products, attract foreign investment, and promote economic development, including coverage for businesses operating in multiple African countries, which can enhance the attractiveness of Nigerian insurers to multinational clients,” he said.

The Chairperson of the Nigerian Insurance Industry Committee on AfCFTA, Ekeoma Ezeibe, said the committee has been working to prepare the sector.

Ezeibe said that since the launch of AfCFTA, the committee has engaged stakeholders’ consultative meetings and intensified enlightenment campaigns.

“We have entered a new phase of enlightenment for operators in our industry. That is why in the past few weeks, you must have seen our enlightenment materials across different industry platforms, flagged off with a special message from the commissioner for insurance,” Ezeibe said.

While the insurance sector is gearing up for AfCFTA’s benefits, Nigeria’s full commitment to the trade pact remains uncertain.

Speaking during a session at the same event, Wamkele Mene, secretary-general of AfCFTA, represented by Emily Mburu-Ndori, director of trade in services, investment, IPR, and digital trade, revealed that 24 countries have fully committed to the agreement, but Nigeria was yet to do so.

“Nigeria is still yet to give a full commitment, although it is in the process because we already have an offer from Nigeria. But it is not yet a commitment,” Mburu-Ndoria said.