22 November 2017

Nigeria: Budget 2018 - N2.43tn Capital Project Vote Signals Better Times for Insurers

Insurance Managers have expressed optimism that the 2018 budget recently presented to the National Assembly by President Muhammadu Buhari holds a lot of potential for them.

Insurance industry experts said they will benefit from the N2.43 trillion voted for capital projects, particularly in the area of road construction and power projects.

They also said the various promises made by the present administration such as free food for school children and other similar programmes to be instituted by the Buhari administration would generate a lot of partnerships that would enhance purchasing power of Nigerians.

Managing Director of Law Union and Rock Insurance, Jide Orimolade, speaking on the expectations of his company and other insurance underwriting firms based on the 2018 budget proposal, at a quarterly press briefing organised by his company in Lagos said: "I believe that with promises by the Buhari's administration in the budget, it is going to provide a lot of income for the insurance companies because there is no way the money released by the government will not spread. It is either the government does it personally or brings in private sector to do it. For us, we believe it will provide income for the insurance industry because right now, there are a lot of public and private partnerships going on. I think going forward, it will continue to happen.

"Look at our rail system, the Chinese bank is the one to fund it and the insurance aspect is not going to be done in their country because of the local content."

He added: "For us at Law Union and Rock, we will in 2018 focus on public sector insurance".

He said his company has competence in engineering insurance disclosing that right now, it is leading other insurance firms to insure eight power generating plants projects in Nigeria.

Orimolade also stated that insurance firms would benefit immensely from the $5.5billion Mambila power plant contract signed by federal government with Chinese government.

"There is gap in power sector that was why government signed the contract and it is an area that will bring a lot of income for insurance industry because of local content and their competence, he stressed.

He also said his company will use technology to drive retail insurance in the coming year, to ensure that people buy insurance from the comfort of their homes and get their claims without visiting an insurance company.


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