Nigeria’s Coordinating Minister of the Economy, Mr. Taiwo Oyedele, today at the inauguration of the Insurance Policyholders Protection Fund (IPPF) said the insurance industry is well positioned to play a more strategic role in infrastructure financing, financial inclusion, and overall contribution to Gross Domestic Product (GDP).
Noting that the industry could give much more to policyholders and the whole economy, the CME said unequivocally, “In Nigeria today, the insurance sector holds vast untapped potential.”
Riding on the strength of what insurance can do, Oyedele said, “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.”
The CME said this administration “recognises that a robust, efficient, and trustworthy insurance sector is essential to achieving broader economic objectives, including diversification and sustainable development.”
Bringing the event of the day into focus and very salient, the involvement of the FG, Oyedele who was represented by the Permanent Secretary, Federal Ministry of Finance, Mr. Raymond Omachi, said, “today’s event is not merely an inauguration, it is symbol of progress, a commitment to accountability, and a foundation for a more resilient insurance industry…The establishment of the IPPF Committee demonstrates our resolve to safeguard the interest 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.”
He clears that the initiative “sends a clear message that the Nigerian insurance industry is secure, reliable, and responsive to the needs of its stakeholders. He also reminded the Committee members that their role is both strategic and consequential. He therefore, urged them to discharge this responsibility with utmost professionalism, integrity, and dedication. “The credibility and effectiveness of the IPPF will depend on your commitment and excellence and your stewardship of this important mandate.
Reinforcing the involvement of the FG in insurance initiatives, he brings to the fore the unbroken policy of government to “continue to collaborate with NAICOM, industry stakeholders and other regulators to:
Deepen insurance penetration nationwide;
Enhance regulatory capacity and institutional effeciency;
Promote innovation through technology and inclusive insurance solutions; and
Ensure that the insurance sector contributes meaningfully to national development.
While taken the opening shot, the Commissioner for Insurance, Olusegun Omosehin, said the event “marks a major step in strengthening confidence in Nigeria’s insurance market and deepening consumer protection. With the establishment of the insurance Policyholders Protection Fund Committee pursuant to Section 212 of the Nigerian Insurance Industry Reform Act, NIIRA 2025, we are moving from policy intent to institutional protection that gives policyholders greater assurance and gives the market greater visibility.”
Omosehin, NAICOM CEO explained that “The IPPF is a statutory net for policyholders when an insurer becomes insolvent or is unable to meet its obligations. Its value goes beyond compensation; it protects households and businesses from avoidable loss, reinforces trust in insurance as a reliable promise, and helps preserve stability across the market.”
Giving more vent to the strength of the new insurance Act, he said, “NIIRA 2025 reflects the Federal Government commitment to a stronger, more resilient, and consumer-centric insurance industry. The legal foundation is now in place, the task before us is disciplined execution that ensures the Fund is credible, well governed, and effective when policyholders need it most.”
