Mr. Olatunde Amolegbe, Managing Director and CEO of Arthur Stevens Asset Management, has called on stakeholders in the insurance and pension industries to devise strategic approaches that will ensure the full integration of Nigeria’s vast informal sector into both systems. 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 emphasized the crucial need to include the informal workforce, which comprises an estimated 70 million individuals, into the national insurance and pension frameworks.

Amolegbe highlighted that both the pension and insurance sectors are vital components of Nigeria’s financial services landscape due to their ability to mobilize and manage long-term investment funds. However, he lamented the ongoing underdevelopment of these sectors, attributing it to public distrust, lack of awareness, and the general skepticism among citizens about the benefits of participating in such financial schemes.

Citing statistics, Amolegbe pointed out that as of 2023, only about 26.3% of Nigerian workers had access to a pension plan or health insurance. This low figure is largely due to the dominance of the informal sector, which employs approximately 92% of the country’s working population. Despite the launch of the Micro Pension Scheme aimed at informal workers, enrollment has been dismal—with only 172,936 registrations recorded by the end of 2024, six years after its inception.

In terms of insurance, he noted that Nigeria lags significantly behind other African nations in terms of penetration, recording less than 1% compared to South Africa’s 11.54%, Namibia’s 7.41%, and the global average of 6.8%.

To reverse these trends, Amolegbe stressed the importance of rebuilding public trust in both sectors. He asserted that without confidence in the systems, informal workers would be reluctant to commit their money. He also advocated for the use of simple, technology-driven methods tailored to the realities of informal sector operators. Suggestions included the creation of micro pension fund administrators (micro PFAs) within local communities and leveraging public awareness opportunities—such as the upcoming NIIRA 2025 initiative—to foster financial literacy and promote savings culture through insurance and pension plans.