To Guarantee Credible Financial Reporting, FRC, NADP Advocate More Actuarial Professionals in Nigeria

Adibe Emenyonu in Benin City 

Due to the low number of Actuarial Professionals in Nigeria, the Financial Reporting Council of Nigeria (FRC), in collaboration with the Nigerian Actuarial Development Programme (NADP) took an advocacy outreach to the University of Benin, Benin City.

Speaking at the event with the theme: ‘Building Capacity for Actuarial Excellence in Nigeria’, Executive Secretary/CEO Financial Reporting Council of Nigeria, Dr. Rabiu Olowo disclosed that the reason for the advocate hinged on the fact that Nigeria has a total of 28 actuaries, a number according to him, is too little to ensure credible financial reporting in the insurance, health and banking sector.

Dr. Olowo also noted that the need for awareness at the grassroot informed the decision to talk to students in universities to embrace the Actuarial profession.

He promised that for those who would like to delve in the profession, FRC, NADP and other stakeholders have provided the enabling environment and incentives for students to pass professional exams like tuition and examination fee; all barriers negatively affecting the growth of the profession.

Others he said are full plans and initiatives in the area of capacity building for practitioners, development of Nigeria Actuarial practice regulations, collaboration on development of the mobility and mortality tables for Nigeria; as well as educational support, bursaries awards and sponsorship through though leadership in the area of hosting the insurance and Actuarial summit.

“Financial Reporting Council stands as a guardian of Financial Integrity. Through regulation and strategic partnerships, FRC ensures transparency and economic stability. The journey continues towards trusted financial reporting ecosystem aimed at providing a collective front to tackle the Actuarial talent shortage, strengthening financial stability, enhancing compliance with global standards, and providing career pathways for industrial collaboration, ” Olowo further disclosed.

Speaking on the topic, ‘Who are Actuaries’ Prof. Ismaila Adeleke of University of Lagos, explained that Actuarial science is a discipline that uses mathematical and statistical methods to assess and manage financial risks, particularly in insurance and finance, by analysing the probability of future events and their financial implications.

It also focuses on understanding and quantifying risks, which are uncertainties that could lead to financial losses. 

Actuaries use advanced mathematics and statistics models to analyse data, predict future events and assess the potential and financial impact of those events.

The field is heavily applied in insurance industry, where actuaries help determine premiums, manage reserves, and assess the financial stability of insurance companies 

Actuaries also work in finance, where they assess risks related investments, pensions and other financial instruments like Life Insurance, Pension Funds health Insurance and Investment with a view to analysing mortality rates such as cost life insurance policies; long term financial stability of financial of pension funds and help to manage investments.

They also analyse health care costs and predict future healthcare expenses as well as assessing the risks associated with different investment strategies.

“Actuaries are like heroes and fortune tellers who calculate possibilities of guiding and protecting business organisations, put in place measures to mitigate risks from happening, help to set aside funds to reduce risks. They are also people who make use of their skills to manage finances and keepers of the book (records)” the professor of Actuarial Science stated.

Professor Ayinde further stated that one of the majr aims of taking the advocacy to universities points to the fact that of the 223 universities in Nigeria, only eight offer Actuarial Science; out of the 50,000 Accountants in Nigeria, none is an Actuarial.

Others who spoke at the event are Kingsley Miller, immediate past President, Nigeria Actuarial Association who topic dell on ‘Introduction to Actuarial Science and Career Pathways’, and Olasunkanmi Ayinde, Head, Directorate of office Actuarial Standards, FRC whose topic is ‘The NADP: Vision, Objectives and Opportunities for Students’.