FRC Set to Release Nigerian Actuarial Practice Regulation 2024, Says Olowo

Oluchi Chibuzor

The Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC), Dr. Rabiu Olowo, has said the regulatory body would soon release the Nigerian Actuarial Practice Regulation 2024.
This, he said, would curtail unlicensed professionals in the system taking undue advantage of the current gap in the number of professionals in the country.
He disclosed this Thursday, at the just concluded Nigerian Actuarial Society 2024 conference with the theme, ‘Actuaries and AI: Strengths, Weakness, Opportunities and Threats’, held in Lagos.

He noted that unlicensed professionals were already taking advantage of the gap in the country, adding that as a regulatory body they are intentional about increasing the numbers of skilled and qualified actuaries in Nigeria.
According to him, “We are aware of unlicensed professionals in the system. This will soon be addressed with the release of the Nigerian Actuarial Practice Regulations 2024 in the next few months by the FRC. In the near future, we will also carry out enforcement programmes to check the effectiveness of these regulations.

“The number today is very disheartening. We have 50 qualified actuaries, whereas our South African counterpart has about 2,000. And if you compare our economy in terms of the size of our GDP, we will be requiring more than 3,000 actuaries to manage financial stability and all the professional work that actuaries do to improve financial stability in our country.

“Actuaries are the architects of financial security, the guardians of risk management, and the champions of informed decision-making.
“Your expertise in assessing and managing risks, forecasting future trends, and ensuring the stability of financial systems is invaluable. In an increasingly complex world, your work provides the bedrock upon which businesses, governments, and individuals can build a secure future. “
Speaking on the theme of the event, Olowo, said this year’s conference resonates deeply with every organisation that aims to survive the incursion of Artificial Intelligence (AI) into its operations and existence.

He noted that from a regulatory point of view, no matter how complex and powerful AI becomes, the human element of actuarial practice can never be obliterated.

He said practitioners must move forward with a renewed sense of purpose, embracing the opportunities and challenges that AI and other innovations present.

The FRC boss urged participants to remember that their strength lied not only in expertise, but also in adaptability, ethical commitment and regulatory compliance to build a future where actuarial science thrives, ensuring financial stability and informed decision-making for all.

“The FRC will never register AI to replace professional actuaries in Nigeria. So, the jobs of our fellows among us are safe. However, associates must brace up for the evolving landscape because it is capable of taking over their jobs. Let me also sound a note of warning that AI is a moving train which every practicing actuary must not be left behind,” Olowo stated.

At the event, the FRC boss promised to put their weight behind “the passage of the Nigerian Actuarial Charter Bill when NAS when it is ready.

“This is a project that must be done as soon as possible. I will encourage the Nigerian Actuarial Society to work closely with the Federal Government of Nigeria and its agencies to succeed in its endeavors.”

He equally intimated that they FRC now have a functional Directorate of Actuarial Standards as part of initiative to address the acute shortage of professional actuaries in the country.

According to him, “It’s part of our intentional approach to intervene in this profession. Since the establishment of the FRC, right from when it was the Nigerian Accounting Standards Board about 40 years ago, the Directorate of Actuarial Standards has not been operative. But this year, I championed the launch of the Actuarial Standards Directorate.

“Now it is functional, manned by qualified people, and that’s why we are partnering with bodies and the Nigerian Actuarial Society in ensuring that the low number of qualified actuaries is being addressed in a very, very intentional way.”

However, Olowo commended the Institute and Faculty of Actuaries (IFoA), the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA) on their roles in developing the profession in the country.