Uninsured Government Assets Threaten National Resilience, NCRIB Warns

The Nigerian Council of Registered Insurance Brokers (NCRIB) has warned that failure to adequately insure government assets could undermine Nigeria’s national resilience and expose the country to significant financial losses in the event of disasters and other unforeseen circumstances.

The President of the NCRIB, Ekeoma Ezeibe, gave the warning during a press conference on Tuesday in Abuja, calling for stronger enforcement of compulsory insurance requirements for government assets to protect critical public infrastructure and safeguard public investments.

“If we do not insure the critical assets of our nation, then it means that in times of shock, there is no resilience,” Ezeibe said.

She stressed that adequate insurance protection for public infrastructure was essential to reducing the financial consequences of unexpected losses and preventing government resources from being diverted unnecessarily to rebuild damaged assets.

According to her, government investments in transport systems, power plants, seaports, railways and other strategic infrastructure make it imperative to ensure that such assets are adequately insured against potential risks.

She warned that damage to or destruction of critical infrastructure could disrupt economic activities, impose substantial costs on government and undermine national development efforts.

Ezeibe noted that the Nigerian Insurance Industry Reform Act 2025 provides for compulsory insurance of government assets and empowers the regulator to enforce compliance.

She said the insurance industry would continue to engage government institutions and regulatory authorities to address gaps in the insurance of public infrastructure and ensure that the law translated into practical action.

The NCRIB president maintained that government must lead by example in complying with compulsory insurance requirements, adding that adequate protection of public assets would strengthen the country’s ability to recover from major disruptions.

She spoke ahead of the NCRIB National Insurance Brokers Conference and Exhibition, which will bring together insurance practitioners, government representatives, regulators, investors and other stakeholders to examine the role of insurance in infrastructure financing and national development.

Ezeibe said insurance brokers had a responsibility to bring together project owners, government institutions, investors and insurers to ensure that appropriate insurance arrangements were incorporated into infrastructure planning and development.

According to her, adequate insurance protection could provide greater reassurance to financiers by reducing uncertainty over the financial consequences of damage to infrastructure assets.

She explained that brokers must help clients identify appropriate coverage, assess potential risks and understand policy terms and conditions before purchasing insurance.

She added that professional brokers should also guide clients throughout the claims process to ensure that policyholders understand their entitlements and receive appropriate assistance when insured losses occur.

Ezeibe stressed that transparent communication about policy coverage, exclusions and claims procedures was essential to building public confidence in insurance.

The NCRIB president expressed confidence in the ability of Nigeria’s insurance industry to cover major infrastructure projects following the sector’s recapitalisation exercise.

She said the recapitalisation, alongside the introduction of risk-based capital requirements under the Nigerian Insurance Industry Reform Act 2025, had strengthened insurers’ financial positions and improved their capacity to underwrite larger risks.

“After the recapitalisation exercise, we have the capacity. We have the technical know-how,” she said.

Ezeibe explained that the risk-based capital framework goes beyond minimum capital thresholds by linking insurers’ capital adequacy to the risks they underwrite.

According to her, the framework requires insurance companies to ensure that the risks they assume remain within their financial capacity, while placing greater responsibility on the National Insurance Commission (NAICOM) to monitor compliance.

She said the approach should promote responsible underwriting and strengthen confidence among policyholders, businesses and investors seeking protection for their assets.

Ezeibe also commended NAICOM for its handling of the recapitalisation exercise, expressing confidence in the regulator’s implementation of the new requirements.

She added that stronger domestic insurers would be better positioned to retain more insurance business within Nigeria, while reinsurance arrangements would continue to provide additional protection for risks exceeding individual insurers’ capacity.

According to her, distributing risks across international insurance and reinsurance markets was an established industry practice that helped spread exposure and protect insurers against major losses.

She maintained that Nigeria’s insurance market possessed the professional expertise to support major infrastructure projects, provided appropriate underwriting standards and risk-management arrangements were maintained.

Beyond infrastructure protection, Ezeibe announced plans to expand insurance access to small businesses, informal-sector operators and underserved communities through technology-driven microinsurance initiatives.

She said the council was working towards introducing a digital application that would enable more Nigerians to access insurance products through their mobile phones.

The initiative is expected to make insurance more accessible to market traders, mechanics and other small-scale business operators who may find conventional insurance products difficult to obtain.

According to her, affordable microinsurance could help small businesses recover from losses caused by incidents such as fire and theft, enabling owners to resume operations more quickly.

She said the insurance industry had a responsibility to extend its services beyond high-income earners and ensure that micro, small and medium-sized enterprises (MSMEs) were included in the insurance safety net.

Ezeibe identified technology as a critical tool for expanding insurance distribution and improving access to affordable products.

She disclosed that the NCRIB had launched an insurance penetration initiative in Ogun State in June, adding that the council intended to consolidate the programme before extending it to other parts of the country.

She said cooperation with state governments would be important to the initiative’s success and that the programme would continue beyond her presidency as part of the council’s institutional responsibilities.

The NCRIB president urged members of the public to verify the registration and licensing status of insurance brokers before engaging their services.

She explained that the NCRIB serves as an initial professional gatekeeper, while NAICOM performs regulatory licensing and enforcement functions.

According to her, the Nigerian Council of Registered Insurance Brokers Act 2003 establishes the legal framework for the council’s registration responsibilities, while the Nigerian Insurance Industry Reform Act 2025 reinforces regulatory oversight.

She warned that practising as an insurance broker without the required authorisation constitutes an offence under the applicable legal framework.

Ezeibe advised consumers to consult the council’s official website, www.ncrib.net, to verify registered insurance brokers and cross-check their credentials against NAICOM’s records.

She said stronger verification mechanisms and regulatory enforcement were necessary to protect consumers from unqualified operators and preserve confidence in the insurance market.

Ezeibe also highlighted consumer-protection provisions under the Nigerian Insurance Industry Reform Act 2025, including the Insurance Policyholders Protection Fund and the Accident Victims Protection Fund.

She explained that the Insurance Policyholders Protection Fund was established to help protect eligible policyholders whose claims remain unpaid under specified circumstances involving insurance companies.

The Accident Victims Protection Fund, she added, provides a framework for assistance in qualifying cases involving third-party victims of uninsured or unidentified vehicles, subject to applicable statutory conditions.

The NCRIB president further noted that the new legal framework requires insurance brokers to maintain professional indemnity cover of at least ₦100 million or 50 per cent of their previous year’s income, whichever is higher.

She said the requirement was intended to provide an avenue for eligible clients to seek compensation where professional negligence or inappropriate advice resulted in losses.

Ezeibe maintained that these provisions reflected broader efforts to strengthen consumer protection, improve professional standards and restore public confidence in the insurance market.

She reiterated that enforcing compulsory insurance requirements for government assets, alongside industry recapitalisation and effective regulatory oversight, would help protect public investments, strengthen national resilience and support Nigeria’s infrastructure development.

She called for sustained collaboration among government institutions, regulators, insurers and brokers to make insurance an integral part of infrastructure planning and national economic development.