Nigeria’s insurance industry is set for a technology-driven shake-up as the National Insurance Commission (NAICOM) teams up with the Fintech Association of Nigeria (FintechNGR) to tackle the country’s stubbornly low insurance penetration rate, currently estimated at between 1% and 3%—among the lowest in Africa.
The partnership was announced during recent engagements between fintech leaders, regulators, and lawmakers, where stakeholders emphasized that digital tools could transform the way insurance products are designed, distributed, and accessed.
A Digital Opening for Insurance
Dr. Segun Aina, President of the Africa Fintech Network (AFN), described the poor uptake of insurance in Nigeria as both a challenge and an untapped growth opportunity. He noted that technology and innovative partnerships could “reimagine how insurance products are designed, distributed, and consumed.”
Echoing this, Dr. Stanley Jacob, President of FintechNGR, said fintech firms must work closely with insurers to expand coverage. “Continuous engagement between regulators and fintech players is critical to deepening financial inclusion, and insurance must be part of that agenda,” he said.
Regulator Admits Gaps
NAICOM Commissioner Olusegun Ayo Omosehin acknowledged that limited use of supervisory technology (SupTech) tools has constrained the regulator’s ability to enforce compliance and drive adoption. He pledged closer collaboration with fintechs to map the ecosystem, identify digital-ready players, and roll out solutions to improve access and innovation.
Analysts believe the initiative could help scale products like microinsurance and health insurance, particularly for low-income earners who are often excluded from traditional coverage.
Wider Push for Reform
The discussions with NAICOM were part of a broader advocacy tour by FintechNGR, which also included a meeting with Central Bank of Nigeria (CBN) Governor Olayemi Cardoso. The association urged the regulator to support the proposed Africa Fintech Passport initiative, designed to promote cross-border innovation and financial inclusion.
Dr. Cardoso, while acknowledging fintechs’ rapid growth, stressed the need for balance: “All we want to hear from your organization is good news. Drive your members in the direction that is good for the country,” he told the delegation.
Dr. Rakiya Opemi Yusuf, Director of the CBN’s Payments System Supervision Department, reinforced the message, saying the apex bank is committed to advancing innovation but equally focused on ensuring compliance.
Legislative Backing
The collaboration comes as President Bola Tinubu recently signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law. The Act introduces stricter capital requirements, mandates compulsory insurance in key sectors, and requires greater digitization across the industry.
The NIIRA 2025 empowers NAICOM to regulate all insurance and reinsurance operators in Nigeria and introduces reforms aimed at boosting consumer protection, attracting new investment, and modernizing operations.
Outlook
With regulatory reform, fintech innovation, and industry partnerships converging, observers say Nigeria’s insurance sector may finally be positioned to unlock its potential—and play a larger role in the government’s ambition to build a $1 trillion economy.
