Vast potentials in insurance sector still untapped, says Finance Minister

By Onu Okorie

In Nigeria today,

The Minister of Finance and Coordinating Minister of economy, Mr Taiwo Oyedele has said that the insurance sector in Nigeria still holds vast untapped potential.

He stated this at the inauguration of the insurance policyholders’ protection fund IPPF in Abuja on May 15th 2026.

Acccording to him, “The Federal Government, under the leadership of President Bola Ahmed Tinubu, recognizes that a robust, efficient, and trustworthy insurance sector is essential to achieving broader economic objectives, including diversification and sustainable development.

The enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 marks a turning point for the sector. 

“The Act introduces a modern, risk-based regulatory framework aligned with global best practices and tailored to the evolving dynamics of Nigeria’s insurance market.”

“The new Act has:Strengthened regulatory oversight and supervisory effectiveness; Enhanced policyholder protection mechanisms; Promoted transparency, accountability, and market discipline; Encouraged innovation and competitiveness within the industry; and Created a more investor-friendly environment that supports both domestic and foreign investment. 

“Most importantly, the Act places policyholder protection at the core of insurance operations, recognising that public trust is fundamental to the growth and sustainability of the industry.”

The Minister further explained that the strengthened regulatory frameworks and increased public confidence, will help the industry to be well-positioned to play a more strategic role in infrastructure financing, financial inclusion, and overall contribution to Gross Domestic Product GDP.

“It is within this context that the Insurance Policyholders’ Protection Fund (IPPF) assumes critical importance.The establishment of the IPPF Committee demonstrates government’s resolve to safeguard the interests of policyholders and ensure that, in the unlikely event of insurer distress or failure, policyholders are protected and their claims obligations are met in a timely and orderly manner.”

“The IPPF will:Provide a financial safety net for policyholders; Enhance confidence in the insurance ecosystem; Mitigate systemic risks within the sector; and Align Nigeria with international best practices on policyholder protection schemes.This initiative sends a clear message that the Nigerian insurance industry is secure, reliable, and responsive to the needs of its stakeholders.” He stated.

“Today’s inauguration of the Insurance Policyholders’ Protection Fund IPPF, Committee marks a significant step in the implementation of the NIIRA 2025, a landmark legislation that reinforces this administration’s commitment to financial system stability, policyholder protection, and economic resilience.”

“The insurance sector remains a critical pillar of any modern economy. It provides the foundation for effective risk management, financial protection, capital mobilisation, and sustainable economic growth. By mitigating risks, insurance enables businesses to invest with confidence, supports innovation, and offers individuals and families protection against unforeseen events.”

Also speaking at the occasion, the Commissioner for Insurance/Chief Executive Officer National Insurance Commission  NAICOM said that the guidelines are designed to protect policyholders while preserving the solvency and competitiveness of insurers. “We expect the Committee to uphold that balance through disciplined judgment, operational readiness, and unwavering professionalism.The inauguration of this Committee today therefore sends a clear signal to the market and the public that consumer protection is central to the future of insurance in Nigeria. If implemented with credibility and consistency, the IPPF will strengthen trust, support deeper market participation, and advance the broader goals of financial inclusion and economic stability.” He said.

“I urge you to approach this assignment with urgency and a clear sense of duty to Nigerian public. Millions of Nigerians rely on insurance to protect their homes, businesses, health, and future, and they will judge this Fund by its readiness to respond fairly and effectively when it is called upon.”