NAICOM Backs Risk-Sharing Framework to Boost MSME, Consumer Credit Financing

By LOVETH AZODO, Lagos

The National Insurance Commission (NAICOM)  has signalled support for deeper collaboration between insurers and credit guarantee institutions as part of efforts to unlock financing for Micro, Small and Medium Enterprises (MSME), local manufacturers and consumer credit customers across Nigeria.

The commitment emerged during a strategic engagement at the Commission’s headquarters Friday, where discussions focused on developing risk-sharing mechanisms that can strengthen lender confidence, reduce default exposure and expand access to structured finance for underserved segments of the economy.

At the heart of the deliberations was the need to create a coordinated platform that allows insurers, banks and credit guarantee providers to engage more directly on syndication models, reinsurance structures and technology-enabled underwriting processes.

Stakeholders noted that stronger integration between credit guarantees and insurance risk solutions could significantly de-risk lending to MSMEs and stimulate growth in priority sectors.

The National Credit Guaranty Company, a Central Bank-licensed private credit guarantee institution, outlined its guarantee structures, including individual and portfolio-based products designed to reduce credit risk and improve capital mobilisation.

The company expressed interest in closer engagement with the insurance industry to broaden risk absorption capacity and deepen market trust.

Responding, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, welcomed the initiative and reaffirmed the Commission’s commitment to frameworks that enhance financial inclusion and economic resilience.

He emphasized that collaboration between insurers and credit guarantee institutions can create layered risk protection models, protect lenders against losses and ultimately strengthen the stability of Nigeria’s financial system.