The Managing Director/Chief Executive Officer of Arthur Stevens Asset Management, Mr. Olatunde Amolegbe, has called on operators in Nigeria’s insurance and pension sectors to devise strategies that will bring the country’s vast informal workforce under coverage.
Speaking at the 10th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos, themed “Strengthening Pension and Insurance Framework for Better Economy,” Amolegbe noted that the informal sector accounts for about 70 million workers—approximately 92 percent of Nigeria’s employed population.
He lamented that despite the sectors’ potential to generate long-term investible funds, both remain underdeveloped due to low public confidence, poor trust, and limited awareness of their value. Citing recent figures, he said only 26.3 percent of Nigerian workers had access to a pension plan and health insurance in 2023, while micro pension adoption has been slow, with just 172,936 registrations six years after its introduction.
On insurance, Amolegbe highlighted Nigeria’s penetration level of less than 1 percent, far below South Africa’s 11.54 percent, Namibia’s 7.41 percent, Morocco’s 4.10 percent, Kenya’s 2.25 percent, and the global average of 6.8 percent.
To address these gaps, he stressed the need for operators to first rebuild public confidence and trust, warning that informal workers would not commit their money to systems they considered unreliable. He further advised operators to simplify enrollment processes using modern technology, establish micro Pension Fund Administrators (PFAs) in local communities, and leverage the publicity around NIIRA 2025 to promote financial literacy among young Nigerians.
Amolegbe maintained that such reforms would not only drive inclusion but also strengthen the role of insurance and pensions in boosting national economic growth.
