Barbara Bako, Abuja
The Federal Government on Friday inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee to strengthen consumer protection and boost confidence in Nigeria’s insurance industry.
Speaking at the inauguration in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the initiative was part of the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 aimed at strengthening financial sector stability and protecting policyholders.
He described the inauguration as a significant milestone in the ongoing reform of Nigeria’s insurance sector.
Oyedele said the insurance industry remained critical to economic growth, financial protection, capital mobilisation, and risk management, adding that the sector still held significant untapped potential in Nigeria.
According to him, NIIRA 2025 introduced a modern risk-based regulatory framework aimed at enhancing transparency, accountability, innovation, and investor confidence in the insurance market.
“The establishment of the IPPF Committee demonstrates our resolve to safeguard the interests 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 said.
The minister said the fund would provide a financial safety net for policyholders, mitigate systemic risks, and align Nigeria with global best practices on policyholder protection schemes.
Oyedele urged members of the committee to manage the fund with professionalism, integrity, and accountability, stressing that the Federal Government would continue to support reforms aimed at deepening insurance penetration and strengthening financial sector stability.
He added that the government would work with National Insurance Commission and other stakeholders to promote innovation, improve regulatory capacity, and ensure the insurance sector contributes more meaningfully to national economic development.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin, said the establishment of the committee marked a major step in strengthening confidence in Nigeria’s insurance market and deepening consumer protection.
Omosehin said the IPPF would serve as a statutory safety net for policyholders whenever an insurer becomes insolvent or unable to meet its obligations.
According to him, the fund is designed to protect policyholders and beneficiaries, ensure proper collection and management of contributions, promote transparency and accountability, and provide procedures for disbursement and recovery of loans from the fund.
“The inauguration of this Committee today sends a clear signal to the market and the public that consumer protection is central to the future of insurance in Nigeria,” he said.
He added that the fund would help resolve distress and insolvencies involving licensed insurers and reinsurers, while strengthening trust and stability within the insurance market.
Omosehin stressed that members of the committee were selected based on their expertise and integrity, noting that the credibility of the fund would depend on disciplined governance, fairness, and transparency in decision-making.
He also assured that NAICOM would provide regulatory oversight and technical support to ensure the committee succeeds in delivering timely protection to policyholders.
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