FRC, NADP lament dearth of actuarial professionals

The Financial Reporting Council of Nigeria and the Nigerian Actuarial Development Programme, on Wednesday at the University of Benin, lamented the dearth of actuarial professionals in the country.

Speaking at the event with the theme ‘Building Capacity for Actuarial Excellence in Nigeria’, the Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria, Dr. Rabiu Olowo, said that Nigeria has 28 actuaries, noting that the number is too small to ensure credible financial reporting in the insurance, health and banking sectors.

He said the FRC and NADP took the advocacy to UNIBEN to create awareness among students and the grassroots.

He noted that FRC, NADP and other stakeholders have provided the enabling environment and incentives for students, like tuition and examination fees, to enable them to pass their professional examination.

He said, “There is a shortage of actuarial professionals in the country, as we presently have 28. For students who would like to delve into the profession, FRC, NADP and other stakeholders have provided the enabling environment and incentives for students to pass professional exams, like tuition and examination fees.

“Other plans to boost the profession include capacity building for practitioners, development of Nigeria’s actuarial practice regulations, and collaboration on development of the mobility and mortality tables for Nigeria, as well as educational support, bursary awards and sponsorship through leadership in the area of hosting the insurance and actuarial summit.”

Speaking on the topic, Who are Actuaries?, Prof. Ismaila Adeleke of the 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.

He said the profession also focuses on understanding and quantifying risks, which are uncertainties that could lead to financial losses.

He said, “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 the 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 to investments, pensions and other financial instruments.

“They also analyse healthcare costs and predict future healthcare expenses as well as assess the risks associated with different investment strategies.

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

He further stated that one of the major aims of taking the advocacy to universities is due to the fact that out of the 223 universities in Nigeria, only eight offer actuarial science, noting that out of the 50,000 accountants in Nigeria, none is an actuary.

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