FRC pushes sweeping Actuarial reforms to support financial stability

The Financial Reporting Council (FRC) of Nigeria has unveiled a sweeping regulatory framework for actuarial practice aimed at strengthening financial stability, improving the quality of financial reporting and boosting investor confidence across key sectors of the economy.

The proposed Nigerian Actuarial Practice Regulations (NAPR) 2026, presented at a stakeholders’ engagement session in Lagos on Tuesday, seek to establish comprehensive standards for actuarial services used in financial reporting, particularly within public interest entities. The keynote address of Rabiu Olowo, executive secretary and chief executive officer of the FRC, was delivered by Olasunkanmi Ayinde, head of the Directorate of Auditing Practices Standards at the Council.

Olowo, said the proposed regulations marked “another significant milestone in our ongoing journey to build a stronger financial reporting ecosystem capable of supporting sustainable economic growth, protecting the public interest, and positioning Nigeria amongst leading jurisdictions with globally respected financial reporting and regulatory systems.” He noted that the initiative goes beyond introducing another regulation, describing it as a critical step towards strengthening institutions and reinforcing confidence in Nigeria’s financial reporting architecture.

He explained that actuarial science plays a vital role in modern financial reporting, influencing financial statements, solvency assessments, capital adequacy and long-term sustainability across sectors such as insurance, pensions, banking, healthcare, social security, infrastructure financing and enterprise risk management. According to him, the growing importance of actuarial work makes it imperative to establish “a regulatory framework that is comprehensive, independent, transparent and consistent with global best practice.”

Ayinde said the reforms became necessary because actuarial practice in Nigeria has long been constrained by structural challenges, including an insufficient number of qualified actuaries, dependence on foreign mortality tables and actuarial assumptions, limited indigenous actuarial research and data, fragmented professional oversight and the absence of a comprehensive national regulatory framework. “These challenges have implications not only for the actuarial profession but also for the credibility of financial reporting, investor confidence and financial stability. As regulators, we cannot ignore these realities,” he said.

To address the gaps, he highlighted the progress made under the Nigerian Actuarial Development Programme (NADP), inaugurated in May 2024 to strengthen the country’s actuarial profession. He said the programme has established a multi-stakeholder actuarial workgroup, introduced nationwide awareness campaigns through the “Catch Them Young” initiative, supported actuarial students through examination sponsorship and reimbursement schemes, adopted the International Standards of Actuarial Practice, built partnerships with leading global actuarial organisations and developed the proposed Nigerian Actuarial Practice Regulations 2026.

According to him, the programme has already reached more than 10,000 students in universities and secondary schools across the country, exposing thousands of young Nigerians to actuarial science as a viable career. He added that strategic partnerships have been forged with the Institute and Faculty of Actuaries, Society of Actuaries, Casualty Actuarial Society and the UNDP-Milliman Global Actuarial Initiative, giving Nigeria access to international technical expertise, capacity development opportunities and professional support.

Olowo said the proposed regulations would establish minimum professional and technical standards, strengthen ethical conduct and professional independence, improve consistency in actuarial practice, enhance transparency and accountability, and encourage the development of Nigerian actuarial data and assumptions. The framework will also support compliance with International Financial Reporting Standards, particularly IFRS 17 and IAS 19, while strengthening investor confidence in Nigeria’s financial reporting environment. “Ultimately, these Regulations will contribute significantly to financial stability and economic resilience,” he said.

He explained that the regulations would apply to actuarial services performed for financial reporting purposes, particularly in public interest entities, with every actuarial valuation, report and professional engagement subject to quality assurance and regulatory oversight. The framework also incorporates the International Standards of Actuarial Practice while adapting them to Nigeria’s economic and regulatory environment. In addition, it embeds strict requirements on ethics, independence, confidentiality, professional competence, peer review and quality management systems to improve the reliability and comparability of actuarial reports.

Calling for robust stakeholder participation, Olowo said the Council was committed to refining the regulations through industry feedback before their final issuance. He noted that as Nigeria modernises its financial reporting architecture, emerging issues such as climate risk reporting, sustainability disclosures, artificial intelligence, demographic shifts, pension reforms and evolving insurance markets will require stronger actuarial expertise backed by effective regulation. “The Nigerian Actuarial Practice Regulations represent more than a regulatory document. They represent an investment in Nigeria’s future,” he said, urging stakeholders to contribute towards building an actuarial profession that inspires trust, supports innovation and strengthens Nigeria’s economic transformation.