Reinsurance in Nigeria: The issue of compulsory legal cession

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