Capital flight of about $2bn takes place in Nigeria each year as multinationals purchase health insurance for their employees from international insurers, according to the National Insurance Commission (NAICOM).
Deputy Commissioner for Insurance (Finance and Administration), Mr Ekerete Gam-Ikon, speaking at a recent conference in Lagos, said that the Nigerian Insurance Industry Reform Act (2025) includes provisions that mandate health insurance to be part of domestic insurance or reinsurance business, reported Africa Press Agency. The new law requires that local capacity be fully utilised before business is ceded abroad.
The law also stipulates that foreign health insurers must obtain NAICOM’s approval before transacting health insurance-related business in Nigeria. “Any person who contravenes the provisions of this subsection shall be liable to a penalty of a sum not less than the total premium involved,” says the Act.
Mr Gam-Ikon said that strong enforcement and collaboration with stakeholders could stem the capital flight. “What the Act has provided for is to have those entities pay a percentage of that to the Nigerian government,” he pointed out.