Nigeria’s implementation of IFRS 17 in the insurance sector is several steps ahead of several African countries and making the country and indeed the market as the de facto lead market in adapting new international system in transparent insurance transaction.
The Commissioner for Insurance, Sunday Thomas, the helmsman of the National Insurance Commission NAICOM, said the Nigerian industry occupies the cynosure position of IFRS 17 in Africa. He explains, “By virtue of my position and by engaging other countries in Africa, we are long way ahead of other countries in Africa. Most have not started their IFRS 17 transaction. We are ready.”
Thomas said the new form of transparent recognising and recording of financial transactions has 2023 as the opening year but the opening balance will reflect in 2024. Because it has become the approved mode of reporting financial transactions, all transactions he cleared are being recorded as it should, recognising and recording financial transactions in a transparent manner with no place to hide any operations anymore.
Nodding the operators adherence to IFRS 17, the CFI said a lot of companies are on course. For for the Commission he said “we have constituted teams that have worked assiduously with what constitute the big four and two actuarial firms.” He added that the immediate past Director of Supervision did a lot and the entire Supervision team did so much to get the IFRS 17 going as scheduled.
Underlining the commitment of the Department to the success so far, Thomas said “We have supported them (companies) as much as possible and we have encouraged them to work together to minimise the cost of transition into IFRS 17. Besides, he stated that previous IFRS 4 was good and the transition from IFRS 4 into IFRS 17 centres on emphasising recognising and recording transactions transparently.
Thomas also recognised that the Commission is not expecting that by 2024 when the current year transactions would by rendered, it would be 100% compliance by the companies, he infers that would be a long stretch of imagination. When companies begin to submit accounts for 2023, he said the Commission would be positioned in the part of correction, see where there are ‘gaps’ and he follows this with a promise, “we will do everything to support the industry to fill those gaps as much as possible.”