NAICOM launches drive to increase Nigerian insurance penetration to 10%

The National Insurance Commission (NAICOM) has launched the Insurance Sector Strengthening Programme (ISSP) in Abuja, aiming to increase insurance penetration in Nigeria from approximately 0.5% of GDP to 10% by 2031.

Following a recent recapitalisation exercise where 43 insurance and reinsurance companies met new minimum capital requirements, the regulator is shifting its focus from strengthening capital bases to expanding market reach. The ISSP is designed to run for 36 to 60 months and is built upon six pillars: Advocacy and Policy, Awareness and Education, Capacity Building, Gender Inclusion, Youth Engagement, and MSME and Value Chain Development.

Commissioner for Insurance Olusegun Ayo Omosehin noted that the industry must address structural barriers such as low public awareness, weak consumer trust, and fragmented distribution channels. He emphasized the need to move beyond physical urban branches toward digital channels to better serve women, young people, and Micro, Small and Medium Enterprises (MSMEs).