In the face of mounting economic challenges, key stakeholders in Nigeria’s insurance and pension sectors have been called upon to take significant steps toward contributing to the federal government’s ambition of achieving a $1 trillion economy by 2030. This appeal was made during an expert panel discussion organised by the Nigerian Association of Insurance and Pension Editors (NAIPE) on October 8, 2024, which featured prominent voices from both industries.

Among the experts on the panel was Yemi Sadiku, Executive Director of Parthian Group, alongside Yetunde Ilori, President/Council Chairman of the Chartered Insurance Institute of Nigeria; Wale Okunrinboye, Chief Investment Officer of Access Pensions; and Dr. Afolabi Olowookere, Managing Director and Chief Economist of Analysts’ Data Services and Resources (ADSR). The session focused on the pivotal role of the pension and insurance industries in advancing Nigeria’s economic aspirations.

Sadiku emphasized that both sectors need to channel investments into long-term financial tools such as federal government bonds and commercial papers, which can boost the country’s capital markets. He pointed out that it is not just about pension fund managers investing Retirement Savings Accounts (RSAs); individual investors should also look to broaden their portfolios.

“In order to invest, you need to first save,” Sadiku said, referencing Parthian Partners’ i-invest platform, which offers access to a variety of investment options. His remarks aligned with the overarching theme of the discussion, which highlighted the need for increased domestic and foreign savings to fuel economic growth.

The keynote speaker, Dr. Afolabi Olowookere, echoed Sadiku’s sentiments, asserting that investment—driven by both domestic and foreign savings—is crucial for economic growth. Olowookere underscored the difficulty of achieving the government’s $1 trillion GDP target by 2030, citing the sharp depreciation of the naira, which fell by 71.15% from N461 per dollar in January 2023 to N1,650 per dollar as of August 2024. Under these conditions, Olowookere projected that Nigeria’s economy could reach $450 billion by 2030, far short of the desired $1 trillion goal.