Nigeria, a country of more than 140
million people with a landmass of about 923,768.64sq. km and immense human and
material resources is a former British colony. Hence, the country shares almost
all its political and economic settings from its former colonial heritage.
Before the introduction of the modern form of insurance, some form of social
insurance had existed in the Nigerian society. These social schemes evolved
through the existence of extended family system and social associations such as
age grades and other unions. Until 1966, Nigeria copied British parliamentary
system of government. This British system still dominates aspects of the
country’s socio-economic settings. For instance, the legal practices in Nigeria
still reflect its colonial heritage. Economic institutions such banks and
insurance companies, in practice, copy the British style of conducting their
businesses.
The origins of modern insurance are
intertwined with the advent of British trading companies in the region and the
subsequent increased inter-regional trade. Increased trade and commerce led to
increased activities in shipping and banking, and it soon became necessary for
some of the foreign firms to handle some of their risks locally. Trading
companies were therefore subsequently granted insurance agency licenses by
foreign insurance companies.
