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By Henry Uche, [email protected]
Nigeria’s population is over 200 million while insurance penetration hovers around one per cent.
By simple arithmetic, it means only one out of every 2 million Nigerians procures insurance service.
This abysmal level of insurance access has lingered for decades defying various reforms.
Industry stakeholders have not given up. They are now rolling out a coordinated strategy to expand coverage, strengthen public trust and integrate more Nigerians into the formal insurance sector.
Driving this initiative is the National Insurance Commission (NAICOM) and the vehicle is the National Insurance Industry Reform Act (NIIRA) 2025.
Three months after it came into effect, the long-awaited changes in Nigeria’s insurance sector are finally beginning to take shape.
In the driver’s seat is Mr. Olusegun Omosehin, the Commissioner for Insurance, whose proactive steps have begun to silence early skeptics.
When Omosehin assumed office, industry watchers wondered if he could deliver on the promises of the reform act and inject new life into a sector long seen as sluggish.
Today, that doubt is giving way to optimism as the National Insurance Commission (NAICOM) in collaboration with stakeholders has out a robust strategy to implement NIIRA 2025.
In Abuja, the Commissioner unveiled a comprehensive Implementation Strategy, complete with three dedicated working groups tasked with turning policy into measurable progress. The move, according to stakeholders, reflects “the kind of hands-on leadership NAICOM has been missing.”
“If NAICOM doesn’t roll up its sleeves and take the lead, others won’t take it seriously. It’s good to finally see real action”, an industry source said.
The three working groups, Compulsory Insurance, Digitization, and Financial Inclusion, will anchor the reform.
The Compulsory Insurance Working Group, chaired by Shola Tinubu, will enforce and expand key mandatory insurance schemes, including Motor (Third Party), Builders’ Liability, Group Life, and Professional Indemnity. The group aims to strengthen compliance nationwide and boost public awareness about insurance protection.
The Digitisation Working Group, headed by Adetola Adegbayi, will modernize the regulatory ecosystem. Its mandate is to improve transparency, data accuracy, and speed of service while expanding access to insurance products through mobile and digital platforms. By driving technology adoption, the group hopes to build trust and attract new users to insurance.
The Financial Inclusion Working Group, chaired by Dr. Yeside Oyetayo, is focused on reaching low-income earners and the informal sector through microinsurance and takaful schemes. The group will partner with the Central Bank of Nigeria (CBN), development partners, and fintech innovators to ensure broader access to affordable insurance products.
Omosehin, while commending stakeholders for their cooperation, pledged that NAICOM would not merely supervise but lead from the front.
“The success of NIIRA 2025 depends on how well regulators, operators, and consumers work together,” he said.
Stakeholders, however, remain cautiously optimistic. Many agree that the structures being put in place could reposition the industry, if properly executed.
Nonetheless, the NAICOM boss reiterated his resolve to see that the implementation phase of NIIRA is inclusive, data-driven, and results-oriented, as it set a holistic roadmap for regulatory reform, digital transformation, and compulsory insurance enforcement. “NIIRA 2025 implementation aims to align Nigeria’s insurance industry with international standards while improving public confidence and economic resilience through risk protection”
Driving NIIRA vision, he emphasised that the strategy would consolidate ongoing reforms within the Commission and reposition the insurance industry as a key player in national economic growth.
“This marks the beginning of a coordinated journey toward achieving a stronger, more transparent, and technology-driven insurance industry.
“The NIIRA 2025 is not just a regulatory document, it is a blueprint for building an insurance sector that protects lives, businesses, and investments across Nigeria. The new working groups would serve as engines of reform, ensuring that critical policy objectives are translated into measurable outcomes. The Commission will continue to steer the insurance sector toward a more resilient, inclusive, and technology-driven future” he added.
Also speaking at a recent event, senior management representatives from NAICOM emphasised the importance of maintaining strong communication channels and measurable benchmarks. They reiterated that the Commission will continuously monitor progress, publish periodic updates, and engage with operators to ensure accountability throughout the implementation process.
The NIIRA 2025 Implementation Strategy signals a unified and forward-looking approach to reforming the insurance industry, anchored on transparency, innovation, and inclusion. By creating clear implementation structures and empowering the working groups to deliver actionable outcomes, NAICOM reaffirmed its leadership and commitment to strengthening the industry’s contribution to Nigeria’s economic development.
Speaking on the record, stakeholders across the insurance value chain said they are taking a wait-and-see approach to gauge the performance of the new leadership at NAICOM. Some anticipate a challenging ride alongside Commissioner Omosehin, while others prefer to observe the battered sector from a distance, measuring progress before offering their assessments.
