As Nigeria joins 54 other African countries to implement the African Continental Free Trade Area (AfCFTA) agreement, insurance brokers are positioning themselves to maximize the benefits of the $490 billion single market. However, concerns have been raised about regulatory frameworks, licensing, and readiness for the continental trade initiative.
These issues were highlighted during an Enlightenment Workshop for Insurance Brokers, organized by the Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA). Key concerns include the lack of uniform insurance regulations across Africa, the need for fresh licenses from the National Insurance Commission (NAICOM) and the Nigerian Council of Registered Insurance Brokers (NCRIB), and the readiness of the insurance industry for AfCFTA.
Emily Mburu-Ndoria, Director of Trade in Service, Investment, IPR, and Digital Trade at the AfCFTA Secretariat, clarified that domestic regulations will prevail under the agreement, with mutual recognition between countries. She emphasized that AfCFTA aims to strengthen regulations to align with international best practices while allowing nations to maintain their regulatory frameworks.
Mrs. Ekeoma Ezeibe, Chairperson of the NII-AfCFTA, noted that the World Trade Organisation (WTO) Protocol signed in 1995 may have opened up parts of Nigeria’s insurance sector 100%, limiting the ability to negotiate reciprocity with other countries. She urged brokers to prepare for the opportunities and challenges of the AfCFTA market.
The workshop shows the need for Nigerian insurance brokers to position themselves strategically to harness the potential of the AfCFTA, which promises to create a unified market of 1.3 billion people and a combined GDP of $3.4 trillion.
