Insurance industry well positioned to play strategic role in financing, financial inclusion, overall contribution to GDP—Oyedele

Minister of Finance has said that the insurance sector holds vast untapped potential. With strengthened regulatory frameworks and increased public confidence, the industry is well-positioned to play a more strategic role in infrastructure financing, financial inclusion, and overall contribution to Gross Domestic Product (GDP).

According to him “The Federal Government, under the leadership of President Bola Ahmed Tinubu (GCFR), recognizes that a robust, efficient, and trustworthy insurance sector is essential to achieving broader economic objectives, including diversification and sustainable development.

“The enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 marks a turning point for the sector. The Act introduces a modern, risk-based regulatory framework aligned with global best practices and tailored to the evolving dynamics of Nigeria’s insurance market.

“The new Act has: strengthened regulatory oversight and supervisory effectiveness; enhanced policyholder protection mechanisms; promoted transparency, accountability, and market discipline; encouraged innovation and competitiveness within the industry; and created a more investor-friendly environment that supports both domestic and foreign investment.

“Most importantly, the Act places policyholder protection at the core of insurance operations, recognising that public trust is fundamental to the growth and sustainability of the industry.

“It is within this context that the Insurance Policyholders’ Protection Fund (IPPF) assumes critical importance. 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.

“The IPPF will: provide a financial safety net for policyholders; enhance confidence in the insurance ecosystem; mitigate systemic risks within the sector; and align Nigeria with international best practices on policyholder protection schemes.

“This initiative sends a clear message that the Nigerian insurance industry is secure, reliable, and responsive to the needs of its stakeholders. I extend my warm congratulations to the distinguished members of the IPPF Committee being inaugurated today.

“Your role is both strategic and consequential. You are entrusted with ensuring that the Fund is: adequately structured and sustainably financed; efficiently managed with transparency and accountability; responsive to emerging industry risks and developments; and operated in strict compliance with the provisions of NIIRA 2025.

“I urge you to discharge this responsibility with utmost professionalism, integrity, and dedication. The credibility and effectiveness of the IPPF will depend on your commitment to excellence and your stewardship of this important mandate.

“Let me reiterate that the Federal Government remains fully committed to supporting reforms that strengthen financial sector stability and protect Nigerian citizens. We will continue to collaborate with NAICOM, industry stakeholders, and other regulators to: deepen insurance penetration nationwide; enhance regulatory capacity and institutional efficiency; promote innovation through technology and inclusive insurance solutions; and ensure that the insurance sector contributes meaningfully to national economic development.

“Distinguished ladies and gentlemen, today’s event is not merely an inauguration, it is a symbol of progress, a commitment to accountability, and a foundation for a more resilient insurance industry.

“With the implementation of NIIRA 2025 and the operationalisation of the IPPF, we are building a system that protects citizens, strengthens confidence, and supports sustainable economic growth.

“It is my firm belief that, together, we will continue to transform Nigeria’s insurance sector into a globally competitive and trusted industry.

On this note, it is my honour to formally invite Members of the Insurance Policyholders’ Protection Fund (IPPF) Committee for the inauguration”.