Nigeria must make insurance and risk management central to its development strategy to shield households, businesses and critical infrastructure from unexpected financial losses, the head of Mutual Benefits Assurance Plc has said. Olufemi Asenuga, the company's Managing Director and Chief Executive Officer, made the call while presenting a paper at the University of Lagos's 19th Annual Research Conference and Fair on 14 October 2026. He argued that development depends not on what a nation builds, but on what survives, stressing that insurance is an essential national tool rather than a peripheral financial service.
The Nigerian insurance market has grown substantially, with gross premiums reaching approximately N2.3 trillion in 2025, up 47 per cent from about N1.56 trillion in 2024. Despite this growth, insurance penetration remains low, leaving many households and businesses vulnerable to financial shocks from illness, death, fire, flooding and business interruption. Asenuga identified low incomes, limited awareness, public distrust, weak enforcement of compulsory insurance, inflation and the informal nature of Nigeria's economy as major barriers to wider adoption.
The presentation outlined how insurance protects three key areas. For households, life assurance, health insurance and property protection can prevent unexpected losses from draining savings or pushing families into poverty. For businesses, particularly small and medium-sized enterprises, insurance enables recovery and continuity after covered losses. Agricultural and index-based insurance can help farmers manage climate risks and strengthen food security. Insurance and pension funds can also finance infrastructure investments.
Asenuga called for coordinated action from insurers, government, regulators, academia and citizens to strengthen insurance's development role. He urged insurance operators to build public confidence through ethical practices, efficient claims settlement and relevant products. Government and regulators should enforce existing insurance requirements, protect public assets and prioritise preventive measures such as effective drainage and sound building standards. He also advocated stronger partnerships between academia and insurers through joint research and internships, and encouraged citizens to obtain appropriate protection through cooperatives and community savings groups.
Asenuga emphasised that insurance complements rather than replaces sound public policy and investment in social infrastructure. It helps individuals, businesses and institutions absorb the financial consequences of covered losses without sacrificing development progress they have achieved.