Severe Actuarial Shortage: Nigeria Has Only 28 Qualified Actuaries – FRC, NADP Warn

Editor 3 days agoLast Updated: April 3, 2025

0 53 3 minutes read

By DAYO ADESULU

The actuarial shortage in Nigeria has raised significant concerns in the financial sector, with the Financial Reporting Council of Nigeria (FRC) and the Nigerian Actuarial Development Programme (NADP) warning that the gap poses a serious threat to credible financial reporting in key industries such as insurance, banking, and healthcare.

Nigeria Faces a Critical Actuarial Deficit

At the “Building Capacity for Actuarial Excellence in Nigeria” event held at the University of Benin, the Executive Secretary/CEO of FRC, Dr. Rabiu Olowo, revealed alarming statistics. Nigeria, a country of over 200 million people, currently has only 28 qualified actuaries, a figure he described as grossly inadequate.

Olowo emphasized that the actuarial shortage in Nigeria threatens the stability of financial risk management, given actuaries’ crucial role in analyzing and mitigating financial uncertainties.

“To bridge the gap, we have implemented several incentives, such as covering tuition and examination fees, to support students in passing their actuarial professional exams,” Olowo stated.

Grassroots Advocacy and Education Initiatives

To address this shortage, FRC and NADP are intensifying advocacy efforts at the grassroots level. These initiatives include:

University outreach programs to encourage students to pursue actuarial science as a career.
Scholarships and financial aid for actuarial students to help them pass professional examinations.
Capacity-building programs aimed at expanding the pool of qualified professionals.
Development of actuarial practice regulations to strengthen the profession in Nigeria.

Olowo also mentioned ongoing collaborations on mortality and mobility tables for Nigeria, which are essential for precise actuarial assessments in insurance and pensions.

The Role of Actuarial Science in Financial Stability

At the event, Professor Ismaila Adeleke of the University of Lagos elaborated on the significance of actuaries in financial stability.

“Actuaries analyze data, predict future events, and assess financial impacts. Their work is crucial in setting insurance premiums, managing reserves, and evaluating the financial stability of firms. They also contribute significantly to investment risk assessment and healthcare cost predictions,” Adeleke explained.

He lamented that despite Nigeria having 223 universities, only eight offer actuarial science as a course. Furthermore, although there are over 50,000 accountants in Nigeria, very few professionals qualify as actuaries.

Actuarial Shortage: Nigeria’s Need for More Actuaries

The actuarial shortage in Nigeria is a major challenge, and the government, private sector, and educational institutions must collaborate to address this gap.

Other speakers at the event included Kingsley Miller, immediate past president of the Nigeria Actuarial Association, who discussed career pathways in the field, and Olasunkanmi Ayinde, Head of the Directorate of Actuarial Standards at FRC, who spoke on the objectives and opportunities of the NADP.

With the financial landscape evolving rapidly, experts stress the urgent need for Nigeria to develop a robust actuarial workforce to maintain economic and financial stability.

Nigeria’s Actuarial Shortage Threatens Financial Stability in Insurance, Banking, and Healthcare

The actuarial shortage in Nigeria poses significant risks to financial stability, particularly in critical sectors like insurance, banking, and healthcare. With only 28 qualified actuaries in the country, businesses struggle with accurate risk assessment, leading to potential financial miscalculations. Insurance firms may set incorrect premium rates, resulting in losses or unsustainable claims. Banks face challenges in managing investment risks, increasing exposure to financial crises. In healthcare, the lack of actuarial expertise can lead to poor medical insurance pricing, affecting accessibility and affordability. This shortage threatens economic growth and investor confidence, emphasizing the urgent need for actuarial development.

Key Takeaways:

Nigeria has only 28 qualified actuaries, an inadequate number for a country of its size.
The actuarial shortage in Nigeria poses a serious risk to financial reporting in insurance, banking, and healthcare.
The FRC and NADP are expanding advocacy efforts and providing financial support to encourage students to pursue actuarial science.
Only eight universities in Nigeria offer actuarial science, highlighting the need for more academic programs.
The profession is crucial for financial risk management, investment assessments, and economic forecasting.