Players in the insurance sector have been urged to position themselves for the sectors with abundant opportunities in the 2025 Appropriation Bill.

This call was made at the Year 2025 Business Outlook organised by the Chartered Institute of Insurance of Nigeria under the theme ‘Budget of Restoration: Insurance Industry Tool for Unlocking Sustainable Growth’ in Lagos.

The National Assembly recently passed a N54.99tn budget comprising N48.14tn in projected revenue and a budget deficit of 13.08tn to be financed through domestic and foreign borrowings, privatisation proceeds, and drawdowns on existing multilateral and bilateral loans. Some of the key assumptions of the budget include an oil price of $75/barrel, 4.60 per cent GDP growth, 2.06 million barrels per day in terms of oil production, and a 15 per cent inflation figure at the end of the year.

In his lead paper, the Partner, Financial Services Industry Audit & Assurance Services Group, KPMG, Akinyemi Ashade, said that despite the challenges that the expansionary budget presents, there are still opportunities for the insurance sector.

He said, “For the insurance industry, in the budget, what are the things that you should expect? Infrastructure and works have sizeable budgetary allocations. It is an expansionary budget, and there will be involvement of SMEs and impact in terms of employment. What does that portend for the insurance industry? Group life insurance, pension, goods in transit insurance, marine insurance (for imports), health insurance for employees, special equipment insurance, and guarantees for new projects and renewal. For health, there is a lot of transformation happening there. Now, every region seems to have a development commission, and what is going to happen in that space is a whole lot of infrastructure, and the opportunities are similar to what I have identified for works and infrastructure.

“For power, there are different power projects, grid expansion, and renewable energy, and there are opportunities there for insurance businesses as well. The Bank of Agriculture and its recapitalisation will lead to the granting of more loans to farmers, and if insecurity is taken care of, people can go back to farms and create opportunities for insurance. And I need to talk about NELFUND. How are we engaging NELFUND? Are they pricing insurance risk into it? There are going to be defaults, and we know that it has come to stay, so there are opportunities here as well.”

The Nigerian Education Loan Fund is the student loan initiative established by the Federal Government to remove financial barriers to achieving higher education.

Ashade also noted that increased regulatory collaborations can boost opportunities for the insurance sector, especially in the areas of group life insurance and motor insurance.

In his keynote address, the Commissioner for Insurance, Olusegun Omosehin, emphasised the importance of the sector tapping into opportunities in the budget.

He said, “One thing I know for a fact is, as a significant sector in this economy, insurance has to be an integral part of this process, and we must find our relevance now such that we are not left behind in the actual implementation. So I’m hoping that part of what will happen at this meeting is that very interesting conversation as to what we should be doing as a sector in order to be able to take full advantage of some of the provisions in the budget.”

Omosehin urged industry players to seek collaboration and a re-jigging of their product design process to take advantage of the 2025 budget.

He said, “There’s so much alignment in terms of the basic provisions and how the budget of restoration will help you. So, in light of this consideration, it is imperative that we engage in collaborative efforts to review our business and production activities, devise organic solutions to address industry-specific and national challenges, and share expertise on navigating the complexities of our sector. Ultimately, achieving sustainable growth requires a synergy of public-private sector collaboration.”

Meanwhile, in her welcome address, the President/Chairman Of Council, Chartered Insurance Institute Of Nigeria, Mrs Yetunde Ilori, charged participants at the event to take decisive and strategic actions enhancing public trust, prioritising prompt claims settlement and customer-centric policies, embracing technology by leveraging digital solutions and insurtech to improve accessibility and efficiency, strengthening regulatory frameworks through ensuring compliance and governance that foster industry stability, building strategic partnerships by working with government, private sector stakeholders, and international bodies to drive industry-wide progress and financial literacy and awareness through educating the public on the benefits and importance of insurance.

She said, “Integrity and ethical practice must be at the core of our industry. We must uphold the highest standards to regain public trust and ensure that insurance is seen not just as a financial instrument but as a pillar of economic stability. The disruptions of recent years—economic uncertainty, evolving risks, and shifting consumer expectations—have made it clear that insurance is not just a safeguard but a strategic enabler of national growth.

“As we gather here today, we must collectively ask, how can we deepen insurance penetration and ensure that every Nigerian understands and embraces the value of insurance? What innovative solutions can we introduce to address emerging risks in sectors such as agriculture, technology, and health? How do we strengthen collaboration between the insurance and pension industries to provide holistic financial security for Nigerians? These are critical questions that this year’s Business Outlook seeks to answer.

“To achieve this, we must prioritise claims settlement and customer experience to rebuild trust, invest in technology-driven solutions for seamless insurance access, strengthen partnerships with government and private sector stakeholders, and foster financial literacy to ensure more Nigerians understand the benefits of insurance.”

Other speakers at the event include a senior manager at the Federal Inland Revenue Service, Oyekanmi Aboyeji, and a senior manager in the Tech Platforms unit of KPMG Africa, Charles Ilo.


https://punchng.com/2025-budget-stakeholders-identify-sectors-with-opportunities-for-insurance/