As Nigeria joins 54 other African nations in advancing a single trade area under the African Continental Free Trade Area (AfCFTA), insurance brokers are preparing to capitalize on the vast $490 billion market. The upcoming launch of the AfCFTA has sparked interest among brokers, who are positioning themselves to reap the benefits of a unified market that could open new opportunities across the continent. A recent Enlightenment Workshop organized by the Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA) raised several important concerns regarding the operational framework for insurance brokers under this new trade system.
One of the primary concerns voiced by brokers is the regulatory framework that would govern insurance practices across Africa. While some African nations have less stringent oversight over brokers compared to Nigeria’s more regulated environment, questions persist about how these disparities would be addressed. Brokers are also seeking clarity on whether they would need to obtain a fresh license from the Nigerian Insurance Commission (NAICOM) and the Nigerian Council of Registered Insurance Brokers (NCRIB) to operate under the AfCFTA framework, as well as how advertisements for insurance brokers will be handled continent-wide.
In response, Emily Mburu-Ndoria, the Director of Trade in Services at the AfCFTA Secretariat, clarified that while each country’s domestic regulations will remain intact, mutual recognition agreements will ensure alignment across borders. This means that while AfCFTA does not impose a unified regulatory structure, it aims to facilitate smoother cross-border operations through harmonized regulations aligned with international best practices. Mburu-Ndoria encouraged brokers to prepare for the opportunities the agreement presents.
The Chairperson of the Nigerian Insurance Industry Committee on AfCFTA, Mrs. Ekeoma Ezeibe, highlighted that the 1995 World Trade Organization (WTO) Protocol might have already opened significant parts of Nigeria’s insurance sector, especially regarding foreign players entering the market. However, she cautioned that reciprocity laws may limit the ability of foreign practitioners to access certain insurance services in Nigeria unless their home countries have also opened their insurance sectors as widely. This points to the need for careful navigation of the evolving regulatory landscape to fully leverage the AfCFTA’s benefits.
source: the nation