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By Henry Uche
The Commissioner For Insurance (CFI), Mr. Olusegun Ayo Omosehin, has urged the National Assembly and state governors to expedite actions to enforce the newly signed Nigerian Insurance Industry Reform Act(NIIRA) 2205, as doing so will reduce government emergency expenditure by 40 percent.
The Commissioner made this plea at the 2025 Stakeholders Retreat of the House Committee On Insurance and Actuarial Matters in collaboration with the National Insurance Commission (NAICOM), under the chairmanship of Ahmadu Usman Jaha, held in Maiduguri, recently.
With The theme: “Navigating The New Era of Insurance Regulation – Understanding the Nigerian Insurance Industry Reform Act 2025”, the Commissioner who made case for farmers, told the lawmakers that, with their support in budget appropriations and subsidies, operators can de-risk agriculture sector, protect livelihoods, and strengthen food security. This he maintained is to halt billions lost annually to floods, drought, and other climate shocks in an environment where only a few of Nigeria farmers have insurance.
“There is a need for insurance- agriculture strategic cooperation. Agriculture remains the backbone of Nigeria’s rural economy and a vital pillar of food security. Yet, it is also one of the most vulnerable sectors, exposed to climate shocks, pest outbreaks, and market volatility. Insurance offers a powerful tool to de-risk agriculture and empower our farmers.
“Recent impact statistics show that over 1.47 million smallholder farmers have been covered under NIRSAL’s agricultural insurance schemes, with a target of 3.6 million by 2026.
“In Q2 2025, 250,000 farmers were insured across eight states under federal initiatives. Statistics has it that in North Central Nigeria, insured rice farmers recorded 11% higher productivity than their uninsured peers, averaging 20 bags/hectare compared to 18 bags/hectare”
Drawing from hindsight, he said disasters and accidents shouldn’t always drain public funds, because with insurance, the government can redirect resources to pressing priorities and ultimately reducing fiscal burden.
“Every year, billions are spent on roads, housing, schools, and hospitals. Without insurance, one disaster can erase years of investment. With enforcement, the government’s emergency expenditures can drop by up to 40%, freeing resources for other priorities like education and health. Insurance is a source of long-term capital. With stronger premiums, insurers can fund infrastructure bonds, housing, and industry.”
The CFI assured the government across board that the insurance sector stands ready to partner with any government to deepen risk protection for public assets and support agricultural resilience.
“NIIRA 2025 is not just about regulation; it is about reimagining the role of insurance in our economy. Therefore, legislative support is nevertheless essential in ensuring compliance by States and Agencies. This Act is a chance to shift insurance from being a niche service to being a pillar of Nigeria’s economic stability. But to succeed, there is need for collaboration and alignments with laws on data protection and cybersecurity, and many others.
“Also, we request that you facilitate harmonization of state policies with federal frameworks. Without your backing, compliance will remain weak, and the promise of this law may not be realised. Let us seize this moment to build a future where insurance is not just a policy document, but a promise of security, resilience, and shared prosperity. Let us align our efforts, legislative, regulatory, and operational, to ensure that NIIRA 2025 delivers on its transformative potential”
The law has been passed, but now the real work has only just started. For this Reform Act to succeed, we request that your committee respectfully exercise oversight to ensure MDAs comply with compulsory insurance; provide budgetary support, drive awareness and advocacy in your constituencies. Insurance is not just about premiums and claims. It is about protecting lives, preserving government resources, and building an economy that can withstand shocks. NIIRA 2025 positions Nigeria’s insurance sector for sustainable growth, enhanced consumer protection, and international competitiveness. We must therefore collectively commit to the successful realisation of the potentials and benefits of NIIRA 2025. Together, we can chart a course that positions Nigeria’s insurance industry as a cornerstone of our $1 trillion economic ambition” he optimism.
