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Stakeholders within the insurance sector have urged operators to capitalize on the African Continental Free Trade Area (AfCFTA) for growth throughout the continent.
This message was shared during a workshop titled ‘Unlocking Opportunities: AfCFTA and the Nigerian Insurance Industry’ held in Lagos.
During the workshop, Dr. Usman Jankara, the Deputy Commissioner for Technical Matters, who spoke on behalf of the Insurance Commissioner, highlighted the significant potential that AfCFTA holds for the industry.
According to Jankara, AfCFTA is projected to establish the world's largest free trade area, fostering economic growth, trade, investment, and integration.
He stated, “For the Nigerian insurance sector, this represents a chance to broaden our perspectives, innovate continuously, and prepare for the effective maximization of the advantages.”
With AfCFTA facilitating a single market of more than 1.3 billion individuals and a combined GDP nearing $3 trillion, he underscored that financial services, especially insurance, are poised to gain from enhanced integration and cross-border ventures that open avenues to fresh markets.
“By eliminating trade obstacles, we can create cross-border insurance products, draw in foreign investment, and bolster economic progress, including coverage for enterprises operating in several African nations, thereby increasing the appeal of Nigerian insurers to international clients,” he remarked.
Chairperson of the Nigerian Insurance Industry Committee on AfCFTA, Ekeoma Ezeibe, noted that the committee has been actively preparing the industry.
Ezeibe mentioned that since AfCFTA's inception, the committee has been conducting stakeholder consultative meetings and ramping up awareness campaigns.
“We are in a new phase of education for operators within our industry. That’s why, in recent weeks, you may have noticed our awareness initiatives across various industry platforms, initiated with a special message from the Insurance Commissioner,” Ezeibe stated.
While the insurance sector is preparing to harness the benefits of AfCFTA, Nigeria's total commitment to the trade agreement still appears ambiguous.
During a panel at the same event, the secretary-general of AfCFTA, Wamkele Mene, represented by director of trade in services, investment, intellectual property rights, and digital trade, Emily Mburu-Ndori, disclosed that 24 countries have fully committed to the agreement, while Nigeria has yet to do so.
“Nigeria is still in the process of making a full commitment, although we have received a proposal from Nigeria. However, it's not yet a formal commitment,” Mburu-Ndori explained.
