Nigeria’s insurance sector is poised for sustained expansion following two decades of sweeping reforms, according to the National Insurance Commission (NAICOM).
Speaking in Lagos, Commissioner for Insurance Olusegun Ayo Omosehin said the industry has undergone a profound transformation between 2005 and 2025—evolving from structural weakness to growing resilience.
Key among the reforms was the 2005–2007 recapitalisation exercise, which strengthened operators’ financial capacity and restored credibility. Subsequent regulatory policies and innovation have further expanded access, improved financial inclusion, and enhanced the sector’s economic relevance.
Omosehin highlighted NAICOM’s shift toward risk-based supervision and stronger regulatory frameworks aimed at protecting policyholders while ensuring industry stability.
A major milestone in the reform journey is the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which significantly overhauls the legal and regulatory landscape. The Act enhances NAICOM’s enforcement powers, strengthens corporate governance, promotes technological innovation, and introduces stricter measures for claims settlement and consumer protection.
The reform also addresses weak enforcement of compulsory insurance policies and reinforces the sector’s role in mobilising long-term funds, supporting infrastructure, and providing financial security.
While the outlook remains positive, Omosehin stressed that continued adaptation to emerging risks, technological change, and evolving customer expectations will be critical to sustaining growth.
He added that the success of the reforms will depend on collaboration among regulators, operators, policymakers, and other stakeholders to build a more competitive and globally relevant insurance industry.
