The Federal Ministry of Finance has called for stronger public confidence in Nigeria’s insurance sector, saying it is vital to financial stability and economic resilience.
Speaking at the inauguration of the Insurance Policyholders’ Protection Fund in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr. Oyedele Taiwo, represented by the ministry’s Permanent Secretary, Mr. Raymond Omachi said insurance underpins risk management, financial protection and capital formation.
“The insurance sector remains a critical pillar in the modern economy,” Omachi said. “By mitigating risk, insurance enables businesses to invest with confidence, supports innovation, and provides protection against unforeseen events.”
He noted that while the industry had yet to reach its full potential, it was well placed to deepen financial inclusion and consumer trust. Omachi also highlighted government initiatives to expand access to opportunities, including loan schemes for civil servants and academics, and urged Nigerians to engage with available programmes.
“We want people to come and join us. There are a lot of opportunities that you can tap into in this government,” he said. “The government is open and wants you to come and enjoy.”
Omachi outlined plans for a grassroots engagement model using online registration, ward coordinators and community units working with local leaders to spread awareness of government policies. The initial target is 8,000 to 10,000 participants, about 1% per electoral ward, with participants expected to produce content showing how programmes are impacting lives.
The IPPF, established under Section 212 of the Nigerian Insurance Industry Reform Act 2025, is designed to settle unpaid claims when an insurer becomes insolvent or loses its licence. It is funded by contributions from insurers and reinsurers and managed under NAICOM’s oversight. Osuji said the Fund would strengthen trust in the sector and align with efforts to build a more resilient, consumer-centred financial system.
NAICOM Commissioner for Insurance, Dr. Olusegun Ayo Omosehin, said the Fund marked a shift “from policy intent to institutional protection” and would give policyholders greater assurance and the market greater credibility.
“The primary role is to settle outstanding policyholder claims if a licensed insurer or reinsurer becomes insolvent or has its licence cancelled. It acts as a lender of last resort for the insured,” he explained.
The Fund will also be used to resolve distress and insolvency of licensed insurers and reinsurers, with disbursements made as loans strictly to settle policyholder claims. Omosehin urged the committee to uphold professionalism, transparency and accountability, saying its work would determine public trust in the sector.
Chairman of the Nigeria Insurance Association, Mr. Kunle Ahmed, said the association initially opposed the committee but now recognises its importance for strengthening the industry.
The Executive Vice Chairman of the Federal Competition and Consumer Protection Commission, Tunji Bello, welcomed the initiative, saying it directly addresses challenges faced by policyholders when insurers fail.
“The establishment of the IPPF reflects a broader commitment to strengthening confidence in Nigeria’s insurance sector and ensuring that policyholders are better protected when insurers encounter financial difficulties,” Bello said.
The IPPF committee will be chaired by Mr. Oye Hassan Odukale, who pledged to work with NAICOM to ensure funds are used mainly to settle customer claims and to reduce the timeframe for settling insured properties.
The event was attended by insurance industry leaders, regulators and other stakeholders.
