PUBLIC INTEREST THEORY AND MICRO-INSURANCE REGULATION IN NIGERIA: A CRITIQUE

Abstract

This study offers a critical analysis of the extent to which public interest theory adequately underpins the philosophical rationale for micro-insurance regulation in Nigeria. Although this theory traditionally supports regulation as a mechanism for addressing market inefficiencies and enhancing overall social welfare, its relevance appears limited within the specific context of Nigeria’s micro-insurance landscape. The paper contends that, notwithstanding the National Insurance Commission’s introduction of the Guidelines for Micro-Insurance Operations in 2018—intended to expand insurance access for small and medium enterprises (SMEs) and low-income populations—the regulatory regime continues to reflect the influence of more powerful interest groups. Using a doctrinal research approach, the analysis reveals that public interest theory does not fully explain the exclusionary tendencies observed in existing regulatory practices. The paper concludes that, in the absence of a more refined philosophical framework, micro-insurance regulation in Nigeria may inadvertently reinforce social inequality and fall short of its intended developmental objectives.