But in Nigeria, a different story is unfolding.

Despite holding over N2 trillion in total investible assets, according to the report the Nigerian insurance industry remains largely absent from the country’s infrastructure financing landscape. This underperformance stands in stark contrast to global best practices, where insurers serve as a reliable source of long-term capital.

In countries like Canada, the UK, and Australia, insurers routinely invest in public-private partnership (PPP) projects, helping governments build and maintain critical infrastructure without excessive debt burdens. Their ability to align long-dated liabilities with long-term assets has made them ideal partners for national development.

By comparison, Nigeria’s infrastructure deficit in estimated at $100 billion annually, with continues to widen, even as local insurers sit on sizeable capital reserves.

Limited Involvement, Missed Opportunities

Several industry analysts and policy experts attribute the limited involvement of insurers in infrastructure development to a combination of regulatory, structural, and market-related constraints.

“There’s a mismatch between the kinds of infrastructure investment opportunities available and the risk appetite or regulatory latitude of insurance firms,” said a senior analyst at one of Nigeria’s leading investment advisory firms.

Other challenges include:

• A lack of investible infrastructure products tailored to the insurance industry;
• High political and repayment risks associated with public-sector projects;
• Limited policy incentives or frameworks to de-risk infrastructure investments for insurers;
• Weak collaboration between government agencies and industry regulators.

Call for Action and Policy Reform

However, momentum for reform is growing. The National Insurance Commission (NAICOM), in collaboration with the Federal Ministry of Finance, is currently exploring the creation of an insurance-linked infrastructure fund, according to someone familiar with the proposal. The initiative aims to unlock capital from the industry and direct it toward priority national projects.

“If Nigerian insurers were to allocate even 5 to 10 percent of their investible assets annually to infrastructure, that’s between N100 billion and N200 billion going into roads, rails, energy, and housing,” said one stakeholder familiar with the plan. “That could be a game changer.”

The move aligns with President Bola Ahmed Tinubu’s broader economic vision of expanding Nigeria’s GDP to $1 trillion through enhanced productivity, infrastructure development, and sectoral collaboration.

A Role Beyond Risk Coverage

While insurance companies in Nigeria have traditionally focused on underwriting and premium growth, industry stakeholders say the time has come for them to take on a more transformative role in the economy.

“Insurers should be more than just underwriters, they should also be builders,” said a NAICOM official. “They have the financial muscle and the long-term horizon needed to finance infrastructure sustainably.”

As Nigeria confronts tough fiscal choices and seeks alternatives to foreign loans, unlocking local capital remains a compelling path forward. The insurance industry, with over N2 trillion at its disposal, could become a critical lever in bridging the infrastructure gap said the report, if policy reforms and investment incentives are aligned.

Until then, Nigeria risks continuing to underutilize one of its most strategic pools of long-term capital, while lagging behind peers in delivering infrastructure that meets the demands of a growing population.

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In a landmark development for Nigeria’s aviation sector, collaborative efforts between the Ministry of Aviation and Aerospace Development and the National Insurance Commission (NAICOM) have led to a significant boost in the leased and financed aircraft market, following a sweeping overhaul of insurance regulations.

For years, Nigerian airlines struggled to secure favorable leasing and financing terms due to unclear insurance provisions and a lack of confidence from international lessors. The situation often left operators with outdated fleets and limited access to competitive aircraft deals.

However, that narrative is changing—rapidly.

The defining moment came when Aviation Minister, Festus Keyamo SAN, and Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, initiated a joint reform agenda aimed at harmonizing aviation insurance frameworks and aligning them with international standards. Their shared goal: to eliminate regulatory ambiguities, build trust with global partners, and enhance Nigeria’s competitiveness in aircraft leasing.

The turning point came at the 4th Chinet Aviacargo Conference 2024, where key stakeholders from the aviation, insurance, and regulatory sectors engaged in frank discussions on how to improve safety and attract investment in Nigeria’s aviation industry. The outcome was a strategic alignment between the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, and the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo SAN. Both officials pledged to overhaul aviation insurance policies to meet international standards.

The conference, convened by aviation and travel expert Ikechi Uko, served as a catalyst for the breakthrough, highlighting the power of cross-sector dialogue in driving reform.

The result is a revamped insurance regulatory regime that includes:

• Clearly defined parameters for insuring leased and financed aircraft
• Stronger reinsurance requirements backed by international reinsurers
• Streamlined coordination between NAICOM and the Nigerian Civil Aviation Authority (NCAA)
• Capacity-building initiatives for local insurance underwriters

These reforms have significantly improved Nigeria’s profile in the global aviation finance ecosystem. Aircraft leasing firms, previously hesitant to engage with Nigerian carriers, are now returning with renewed confidence. Airlines are securing better lease terms, upgrading their fleets, and expanding routes.

“This reform didn’t happen by chance,” said an executive at one of Nigeria’s leading airlines. “It was the product of focused leadership and strategic collaboration. The partnership between aviation and insurance regulators has broken down barriers that held this industry back for years.”

Insurance companies are also stepping up, offering tailored products specifically designed for lease-backed financing. This innovation is driving down insurance costs and improving the risk profile of local operators.

Industry experts believe the reforms will have a ripple effect—enhancing safety, increasing capacity, attracting foreign investment, and positioning Nigeria as a regional aviation hub.

As the sector reflects on this milestone, stakeholders agree on one key takeaway: when government institutions collaborate with purpose and clarity, reform becomes not only possible but transformational.

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