Actuarial professionals are in short supply in Nigeria. This is according to the Chief Executive Officer of the Financial Reporting Council, FRC, Dr Rabiu Olowo, who said that despite the country’s limitation, Artificial Intelligence, AI, will not be allowed to take over jobs that are originally meant for humans in the country.
According to the FRC boss who stated this while giving a keynote address at the 2024 Annual Industry Conference of the Nigerian Actuarial Society which recently held in Lagos and was themed, ‘Actuaries and AI: Strengths, Weaknesses, Opportunities, and Threats,’ Nigeria has no more than 50 professional actuaries, who by virtue of their profession, are saddled with a responsibility to assess financial risks in the insurance and finance fields, using mathematical and statistical methods.
The FRC boss lamented that Nigeria had fewer than 50 professional actuaries and noted that due to the shortage, AI had the potential of taking over the jobs of professional actuaries in Nigeria, but this will be stalled because it will not be registered.
Olowo said, “From a regulatory point of view, let me assure you that no matter how complex and powerful AI becomes, the human element of actuarial practice can never be obliterated. For clarity purposes, I mean, no matter how perfect AI may be, the FRC will never register AI to replace professional actuaries in Nigeria. So, the jobs of our fellows among us are safe.
“However, associates must brace up for the evolving landscape because it is capable of taking over their jobs. Let me also sound a note of warning that AI is a moving train which every practising actuary must not be left behind.
“The application of AI by professional actuaries will bring about further regulatory checks, including ethical issues and concerns about bias in AI algorithms and decision-making processes. Therefore, we must upscale our use of AI in reviewing and inspecting practitioners’ work or reports. Both regulators and practitioners will incur costs related to acquiring AI applications and upskilling staff,” he stated.
Continuing, the FRC boss said, “It may interest you to know that we have fewer than 50 actuaries, whereas South Africa has almost 2000.”
He said, in a bid to combat the acute shortage and develop actuarial practice in Nigeria, the council had set up the Nigerian Actuarial Development Programme, coordinated by Mr Rotimi Okpaise and that, NADP will ensure the availability of physical/virtual tuition houses for those writing external professional examinations, support them financially and materially and collaborate with renowned professional bodies to reduce exam fees for Nigeria.
“NADP is established to address the acute shortage of professional actuaries in the country. The programme aims to change the general lack of awareness about the profession. We intend to reach the secondary school level to create awareness and collaborate with NUC to increase the number of universities offering degree programs in actuarial science; currently, only 4 out of 273 universities do.
“Additionally, it will support the passage of the Nigeria Actuarial Bill at the National Assembly and the development of Nigerian actuarial tables.
“NADP has already taken off. I inaugurated the working group in early May 2024. The workgroup comprises all stakeholders in the actuary landscape in Nigeria, including representatives from the Nigerian Actuarial Society, the academia, NAICOM, PENCOM, NHIA, the big four firms, Nigerian Insurers Association, PENOP, UNDP Global Actuarial Initiative and the Nigeria Population Commission.
“The idea behind the programme is to create an all-inclusive platform for developing the profession so that we don’t have duplicated efforts and wasted resources,” he said.
Olowo also disclosed that the Institute and Faculty of Actuaries, the UK’s chartered professional body for actuaries, has accredited the Actuarial Science and Insurance, MSc programme at the University of Lagos and with that of the undergraduate programme being expected.
“The programme will support and sustain the development of the Nigerian actuarial mortality and morbidity tables being technically championed by the UNDP GAIN/ Milliman Inc. In fact, FRC cannot wait to issue the table out as standards for Nigeria so that we can reduce our reliance on foreign data to handle our local challenges,” he stated.
Meanwhile, on the Nigerian Actuarial Charter Bill, the FRC boss expressed support and said it would be willing to work with NAS when it is ready, adding that the council would soon be releasing the Nigerian Actuarial Practice Regulations 2024 to combat unlicensed professionals in the sector.
“This is a project that must be done as soon as possible. I will encourage the Nigerian Actuarial Society to work closely with the Federal Government of Nigeria and its agencies to succeed in its endeavours. Unlike many developed economies, government is key in Nigeria and NAS may not go far without it. ICAN and other professional bodies have a member nominee in their councils. Such collaboration will be crucial to contribute meaningfully to the actuarial development,” he explained.
