The Financial Reporting Council of Nigeria (FRC) and the Nigerian Actuarial Development Programme (NADP) have raised alarm over the shortage of actuarial professionals in the country. This was discussed during an event held at the University of Benin (UNIBEN) on Wednesday. The event, which had the theme “Building Capacity for Actuarial Excellence in Nigeria,” highlighted the challenges Nigeria faces in building a strong actuarial profession.
Speaking at the event, Dr. Rabiu Olowo, the Executive Secretary and Chief Executive Officer of the FRC, revealed that there are currently only 28 actuaries in Nigeria. He explained that this number is far too small to ensure reliable financial reporting, especially in key sectors such as insurance, health, and banking. Dr. Olowo further pointed out that this shortage could pose a risk to the country’s financial stability. He explained that the FRC and NADP had taken the advocacy campaign to UNIBEN to create awareness among students and the general public about the importance of actuarial science and its role in financial management.
He noted that the FRC, NADP, and other stakeholders are working to create an enabling environment for students who wish to pursue actuarial science. This includes providing support such as covering tuition and examination fees for students to pass their professional exams. Dr. Olowo emphasized that these efforts are part of a broader strategy to grow the profession in Nigeria, which includes building capacity for existing practitioners, developing the country’s actuarial practice regulations, and collaborating on creating mortality and mobility tables for Nigeria. He also mentioned plans for providing bursary awards and sponsorship for students, as well as hosting events like the insurance and actuarial summit to further promote the profession.
Professor Ismaila Adeleke, a lecturer at the University of Lagos, spoke about what it means to be an actuary. He explained that actuarial science is a field that uses mathematical and statistical methods to assess and manage financial risks. This includes evaluating the probability of future events and their financial implications, particularly in industries like insurance and finance. According to Professor Adeleke, actuaries play a key role in the insurance industry by helping to determine premiums, manage reserves, and assess the financial stability of insurance companies. Actuaries also work in finance, where they assess risks related to investments, pensions, and other financial instruments. They are also involved in analyzing healthcare costs and predicting future healthcare expenses.
He further explained that actuaries are critical to businesses because they help guide organizations in managing risks. They calculate the chances of various outcomes, put in place measures to mitigate risks, and help businesses set aside funds to reduce the impact of those risks. In short, actuaries use their skills to protect businesses and ensure their financial health.
Professor Adeleke also mentioned that one of the main reasons for taking the advocacy to universities is to raise awareness about the profession. Out of the 223 universities in Nigeria, only eight offer actuarial science as a course. He noted that although Nigeria has more than 50,000 accountants, none of them is an actuary, which further illustrates the shortage in the profession.
At the event, Kingsley Miller, the immediate past President of the Nigeria Actuarial Association, spoke about the “Introduction to Actuarial Science and Career Pathways.” He explained the different career opportunities in the field and how students can pursue a career as actuaries. Olasunkanmi Ayinde, the Head of the Directorate of Office Actuarial Standards at FRC, also spoke on the vision, objectives, and opportunities provided by the NADP for students interested in actuarial science.
The event at UNIBEN was a step toward addressing the shortage of actuarial professionals in Nigeria and encouraging young people to consider a career in this important field.
