The Chartered Institute of Directors (CIoD) Nigeria, Abuja Chapter, has identified weak corporate governance as a major obstacle to the growth of Nigeria’s insurance industry, urging operators to strengthen governance practices, embrace innovation and build strategic partnerships to maximise opportunities within the country’s expanding energy sector.
The call was made by the Chairperson of the CIoD Abuja Chapter, Mrs. Rose Eshiett, during the investiture of the newly elected Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu.
Speaking on the theme, “Moving Insurance from Potential to Performance: Leveraging Governance, Innovation and Strategic Partnerships to Unlock Opportunities in Nigeria’s Energy Economy,” Eshiett said the insurance industry must move beyond its long-recognised potential and focus on delivering tangible results that contribute to economic growth and national development.
She stressed that while Nigeria’s insurance market possesses significant opportunities, sustained growth will only be achieved through improved performance, stronger institutional credibility and increased public confidence.
According to Eshiett, sound corporate governance remains the cornerstone of successful insurance institutions. She noted that ethical leadership, transparency, accountability, effective risk management and responsible decision-making are essential for building trust and ensuring the long-term sustainability of the industry.
She explained that strengthening governance frameworks would enhance the credibility of insurance companies while positioning them to take advantage of emerging business opportunities across key sectors of the economy.
Eshiett identified Nigeria’s evolving energy industry as one of the most promising growth areas for insurers, pointing to increasing investments in oil and gas, gas infrastructure, refining, petrochemicals and renewable energy projects. She said these developments would create growing demand for specialised insurance products, sophisticated risk management services and technical expertise.
To effectively compete in this environment, she urged insurance companies to invest in underwriting capacity, actuarial science, risk engineering, cybersecurity, data analytics and workforce development, describing human capital as a critical driver of industry competitiveness.
She also highlighted the transformative role of digital technology, noting that innovation is reshaping the global insurance landscape. According to her, insurers that embrace digital transformation and adapt quickly to changing market realities will be better positioned for future success.
“The institutions that will lead the future insurance market will not necessarily be the largest, but those that are innovative, agile and trusted by customers,” she said.
Eshiett further advocated stronger collaboration among insurers, regulators, brokers, reinsurers, financiers, professional bodies and players in the oil and gas sector to promote innovation, strengthen local capacity, retain more insurance premiums within Nigeria and deepen confidence in the industry.
She congratulated the newly inaugurated leadership of the Nigerian Insurers Association, expressing optimism that the association would provide the strategic direction needed to improve the industry’s competitiveness and support Nigeria’s broader economic transformation.
Her remarks come as Nigeria’s insurance industry continues to record notable growth. According to recent data released by the National Insurance Commission (NAICOM), the sector generated ₦2.30 trillion in Gross Premium Written at the end of the 2025 financial year, representing a 47.3 per cent increase compared to the previous year.
The industry’s expansion was driven largely by the non-life insurance segment, which accounted for more than two-thirds of total premiums. Within that category, oil and gas business remained the largest contributor, reflecting the growing importance of energy-related risks to Nigeria’s insurance market.
Industry stakeholders believe that sustaining this momentum will depend on stronger governance, continuous innovation and strategic partnerships capable of supporting the sector’s long-term growth and increasing its contribution to the nation’s economy.
