¹University of Nigeria, Enugu Campus, Department of Banking and Finance

Abstract

In recent times, the business and practice of reinsurance in Nigeria have come under increased scrutiny. Perhaps the most contentious issue in this arena is that of compulsory legal cession, of which the government-owned Nigeria Reinsurance Corporation has enjoyed the benefits since its inception in 1977. This paper traces the origins and development of reinsurance in Nigeria and argues that the compulsory legal cession, which Nigeria Re enjoys, has today outlived its usefulness. Legal cession is however not the only issue in reinsurance in Nigeria. Also of importance is the need for the government to create a conducive, macro-economic environment for the practice of insurance (and reinsurance) in Nigeria. It is the lack of this that has led to the reduced international interest in the Nigerian reinsurance arena.