Nigeria: Finance minister urges insurers to recapitalise
The Nigerian government wants to boost the development of insurance.Nigerian Finance Minister Kemi Adeosun has urged insurers to recapitalise to boost the sector's development.
At the Insurance Industry Consultative Council (IICC) conference last week, she quoted figures revealing that insurance companies are the least capitalised financial firms in Nigeria.
"The first top three banks have over N30 billion (€96 million) in capital each ,while the top three insurance companies’ capital base is between N20 and N25 million each."
She said that recapitalisation is essential to reverse the decline of the industry, which is lagging behind compared to the rest of the continent despite operating in the largest economy in Africa.
She noted that the sector can create as many as 70000 new jobs, adding that the government must act as a natural incubator for necessary growth in the areas of compulsory insurances.
"A developed and active insurance industry will bring about an increase in GDP, an accumulation of long term fund for infrastructure financing, new jobs and will improve the standard of living."
She said that among the factors that have caused the industry to underperform is low awareness, unhealthy competition, lack of innovation.