Despite Nigeria’s high-risk environment, the nation’s insurance sector continues to underperform, with fewer than two million Nigerians holding active insurance policies—a figure that exposes the industry’s struggle with relevance, trust, and accessibility.
This sobering statistic was a key talking point at Investment Summit 1.0, a gathering organized by Investment Info Hub Nigeria Ltd in collaboration with Cornerstone Insurance Plc, under the theme “Investments in Insurance: Opportunities for Financial Growth.” The event brought together stakeholders to explore how insurance could play a more impactful role in supporting financial development in Nigeria.
The Real Barriers: More Than Just Poverty
Tunde Lawuyi, head of strategy at Cornerstone Insurance, cited recent findings from EFInA, revealing how deeply underserved the Nigerian population remains in terms of insurance coverage. According to Lawuyi, the issue isn’t just about financial hardship—it’s about a mismatch between insurance offerings and real-life needs.
“Most insurance products in Nigeria are designed for middle- or upper-income earners,” he noted. “Yet, millions of Nigerians earn their living through informal trade or subsistence farming. Offering them policies like home or vehicle insurance misses the mark.”
Why Microinsurance Could Be the Game-Changer
Lawuyi stressed the need for microinsurance—low-cost, targeted products meant for people in the informal sector or with low incomes. Despite existing policies to support this shift, implementation has lagged behind.
“A microinsurance plan costing just ₦500 to ₦1,000 a year could provide critical protection,” Lawuyi said. “But the industry faces a major hurdle: how to make such products profitable and scalable. The answer lies in technology—using digital tools to cut distribution costs and reach more people quickly.”
Public Distrust and Financial Scars
Asamau Adams, a brand strategist with Investment Info Hub Nigeria Ltd, addressed the issue of mistrust, citing the lasting damage caused by Ponzi schemes like MMM and CBEX, which have left many Nigerians wary of any financial service.
“Many people associate financial products with fraud, and that perception is hard to change,” she said. “It’s not just about affordability—it’s also about trust and education.”
Adams called for reframing the narrative around insurance. “It’s not only for the wealthy. Insurance can protect a trader’s inventory, a farmer’s tools, or even a student’s mobile phone. But the public isn’t aware of these options.”
Educating the Next Generation
Kayode Odetola, Cornerstone’s head of retail, warned that poor financial education, especially among younger Nigerians, leaves them vulnerable to unsafe investment schemes and unregulated platforms promising unrealistic returns.
“The absence of financial literacy is leading to dangerous choices,” he said. “Insurance should be positioned as a tool for security, not a luxury item.”
A Complex Landscape Requires Bold Action
Shehu Raji, COO of Investment Hub Nigeria Ltd, painted a broader picture of the industry’s uphill battle. He listed regulatory bottlenecks, infrastructure gaps, insecurity, and a prevalent get-rich-quick culture as core barriers to both investment and insurance growth in the country.
Raji emphasized that for insurance to become a pillar of Nigeria’s financial system, the focus must shift toward relevant product design, grassroots accessibility, and collaborative trust-building among providers, communities, and tech platforms.
Conclusion: A Call for Inclusive Insurance Reform
The summit underscored a central truth: insurance in Nigeria must evolve to reflect the country’s economic realities. For the sector to reach its potential, it must embrace micro-level innovation, build public trust through education, and use technology to scale impact where it’s needed most.
Unless these structural issues are addressed, millions will remain exposed to everyday risks without any form of safety net—a reality Nigeria can no longer afford to ignore.
