NAICOM, Governors’ Forum to Collaborate on Expanding Insurance Reach Across Nigeria

By LOVETH AZODO, Lagos

The National Insurance Commission (NAICOM) is partnering with the Nigeria Governors’ Forum (NGF) to enhance the reach and adoption of insurance across all 36 states.

The Commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, visited the NGF Secretariat August 30, 2024 in Abuja to meet with its Director-General, Dr. Abdulateef Shittu, and discuss a strategic collaboration to boost insurance penetration.

Dr. Shittu welcomed the NAICOM team and explained the role of the NGF Secretariat as the policy and administrative hub for Nigeria’s state governors.

Serving as a resource center for state policy formulation, the Secretariat aims to facilitate streamlined interactions between businesses and state governments.

Addressing the gathering, Mr. Omosehin highlighted NAICOM’s commitment to regulating and advancing the insurance sector in Nigeria.

He noted the need to foster a stronger insurance culture nationwide by ensuring broader compliance with compulsory insurance laws.

While enforcement efforts are already underway at the federal level, Omosehin stressed the importance of replicating these efforts at the state level through collaboration with the NGF.

“Our goal is to adopt a more coordinated approach in engaging with states,” Omosehin said. “Partnering with the NGF as a policy hub will help align state-level implementation of insurance policies and ensure uniformity in enforcement.”

He pointed out the necessity for states to adopt and adapt federal laws on compulsory insurance, using Lagos State as a model.

Omosehin emphasized that a unified strategy is needed to prevent fragmented approaches among states, particularly concerning motor third-party insurance, which could significantly improve states’ internally generated revenue (IGR).

Dr. Shittu expressed confidence in the potential of the collaboration to deepen insurance penetration and assured NAICOM of the NGF’s support. Both organizations agreed to draft a concept note outlining the partnership’s framework, which will be reviewed to kickstart the initiative.

A joint committee was formed to develop an actionable plan and ensure swift implementation. With preparatory groundwork already in place, both NAICOM and the NGF are poised to move quickly in fostering greater insurance awareness and compliance across Nigeria.

The proposed collaboration marks a crucial step towards unifying insurance regulations nationwide, potentially driving economic growth and financial security in all 36 states.