Financial Reporting Council of Nigeria Proposes New Regulations for the Actuary Profession
The Financial Reporting Council of Nigeria (FRCN) is set to enhance financial reporting standards and bolster investor confidence through a series of proposed regulations tailored for the actuary profession. This development was the centerpiece of a recent stakeholder engagement event in Lagos, where experts gathered to examine the draft Nigeria Actuarial Practice Rules 2026.
Executive Insights on New Guidelines
Mr. Rabiu Olowo, Executive Director and CEO of the FRCN, represented by Mr. Olasunkanmi Ayinde, Deputy Director-General, emphasized that these guidelines mark a significant milestone for the Nigerian economy. He asserted that reliable financial reporting relies heavily on robust risk calculations conducted by actuaries.
Framework Built on International Principles
Olowo highlighted that the proposed framework was meticulously crafted according to international standards while being mindful of local economic contexts, particularly in sectors such as insurance, pensions, and healthcare. He pointed out that weak actuarial assumptions lead to less reliable financial reporting, causing erosion of investor confidence and diminishing public trust due to inadequate professional accountability. The upcoming Nigeria Actuarial Code of Practice aims to comprehensively tackle these challenges.
Addressing Professional Shortages in Risk Management
The event also emphasized the ongoing initiatives under the Nigeria Actuarial Development Programme, designed to combat the critical shortage of risk management professionals in the nation. Rotimi Okpaisu, Coordinating Chair of the programme, underscored the objective of establishing a strong and globally competitive actuarial profession, stressing that the true success of this initiative would be reflected in its long-term impact on both individuals and businesses.
Panel Discussion on Workforce Development
During a panel session, regulators and practitioners discussed strategies to significantly expand the actuarial profession. Akinyemi Ashedo, Chair of the Technical Working Group, remarked that the development of a skilled workforce must begin with a comprehensive revamp of university curricula. He stated that effective education should produce candidates well-equipped to excel in professional examinations.
Promoting Actuarial Careers from an Early Age
In alignment with this perspective, Ganiu Shefiu, head of the actuarial department at AXA Mansard Insurance, noted that many young people are unaware of career opportunities within the actuarial field. He advocated for early awareness campaigns and commended the FRCN for offering financial incentives to students who successfully pass their professional examinations.
Collaborative Commitment Towards a Robust Financial Ecosystem
The event concluded with participants pledging to collaborate closely in finalizing regulatory documents. Their collective aim is to establish a strong and resilient financial ecosystem in Nigeria that meets global standards, ensuring the country’s financial integrity and fostering investor confidence.
