Buhari pledges to reduce poverty level, financial exclusion

President Muhammudu Buhari on Monday in Abuja said a major concern of his administration was to ensure a massive reduction in poverty level and financial exclusion in the country.

Buhari gave the assurance at the 2019 National Insurance Conference (NIC), with the theme “Disruption, Innovation and Business Growth.”

The President, who was represented by Mr. Mahmoud Isa-Dutse, the Permanent Secretary, Federal Ministry of Finance, said the research by Enhancing Financial Innovation and Access (EFInA) revealed that only 36.8 percent of Nigeria adults are financially included as 2018.

He said the actualization of Financial System Strategy (FSS) 2020 of the country’s industry through the financial sector, among others remained a strong solution to poverty reduction and financial exclusion.

According to the President, the FSS hopes to achieve 40 percent financial inclusion by 2020.

He said, “The Federal Government will collaborate with the National Insurance Commission (NAICOM) and insurance operators that are also constituents of the financial sector, to achieve the 40 percent inclusion by 2020.”

He noted that the insurance industry could further help to reduce the level of poverty because of its ability to mitigate risks and protect Nigerians.

He said the industry could provide a cheap source of funds that the federal government could borrow from to facilitate developments instead of resorting to external borrowing.

“So I plead with the operators to evolve insurance products that would attract Nigerians to insurance.

“I also plead with operators to expand operations to all the nooks and crannies of the country,” he said.

However, Buhari expressed displeasure that insurance penetration in Nigeria was still below one percent.

On recapitalization, the president urged the operators not to kick against the new recapitalization policies announced by NAICOM in May.

He said they should not fight the policies just because they could not raise the expected capital.

He said the industry needed expanded capital base to operate optimally and for claims payments.

The Head of Service of the Federation (HoSF), Mrs. Winifred Oyo-Ita, in her speech, said the service would work with underwriters to promote insurance among Nigerians.

Oyo-Ita, who was represented Mrs. Didi Walson-Jack, Permanent Secretary, Service Welfare Office, (HoSF), said the office would always motivate the country’s workforce.

The Chairman of (IICC), Eddie Efekoha, pleaded with NAICOM to give favorable consideration to the suggestions made by the Nigerian Insurers Association (NIA) in its on-going engagements on the recapitalization.

He said the consideration was necessary so that the necessary guidelines when released would ensure that the objectives of the reform were fully realized.

“The recapitalization exercise, like the past reforms, presents both opportunities and new challenges.

“As operators, we must begin now and not later to address our minds to the following questions: How do we maximize the use of the additional capital to generate superior returns to investors?

“How does technology help the industry to deliver superior service and deepen insurance penetration?

“How do we develop a data pool that supports improved pricing of risks underwritten and innovative products driven by consumer insights?

“What do we do to develop and attract the right skills and talents that can match the fast pace of technology revolution among others?’’ he said.

Efekoha stated that the industry must also think of how to harness the values inherent in partnering other industries such as telecoms and commercial banks to deepen insurance penetration.

“How do we partner various arms of government like the Nigerian Police Force (NPF), Customs and Fire Service to ensure compulsory insurances are enforced?” he said.

NIC 2019 was introduced by the Insurance Industry Consultative Council, (IICC) to develop the industry.

IICC is the amalgamation of all the constituent arms of the insurance industry, namely: The Chartered Insurance Institute of Nigeria (CIIN); The Nigerian Insurers Association (NIA); The Nigerian Council of Registered Insurance Brokers (NCRIB) The Institute of Loss Adjusters of Nigeria (ILAN).

The National Insurance Commission (NAICOM) serves as the coordinating arm.

The idea behind the formation of the IICC is to give a unified and cohesive voice to the Nigerian Insurance Industry, with a view to making the industry accelerate its impact and contributions to the nation’s economy.

No fewer than 600 insurance operators from all over the country participated in 2019 NIC.