An Insurance expert, Mr Remi Olowude, has identified compliance with the International Financial Reporting Standard (IFRS) as a challenge facing Nigerian insurance companies operating in other African countries.

Olowude, the Executive Vice Chairman of Industrial and General Insurance (IGI), made the observation in Lagos in an interview newsmen.

He said that compliance with the IFRS was contributing to the delay in submitting financial reports of these insurance subsidiaries ahead of the June 30 deadline.

“Some African countries, especially East Africa, transited to IFRS in 2010, but are not prepared for it in terms of capacity to produce such report.

“This is a big challenge as we have to send experts from Nigeria to help them prepare an IFRS compliance report without which the government would not approve it.

“We need the report in Nigeria to consolidate our financial reports with the new directives from the Financial Reporting Council of Nigeria,” he said.

Olowude said that insurance practice in other African countries was good investment, adding that the level of compliance with insurance regulations was high.

“In Nigeria, no government pays premium on time. Domestic debt is affecting construction companies and other organisations, including insurance companies.

“We are asking government to convert the premium it is owing to debt for the Debt Management Office to sell them through bonds,” he said.

Olowude said that insurance was a long-term investment, adding that it is like planting cash crop which takes some years to harvest.

“In setting up subsidiaries in some African countries, insurance companies have gone to plant cash crops and the returns will be sure and certain, but for a long time,” he said.