The National Insurance Commission (NAICOM) has released a five-year reform programme to lift Nigeria's insurance penetration and expand coverage to 25m Nigerians.
Under the plan, NAICOM targets an interim penetration rate of 1.5% by 2028 that would jump to 10% by 2031. Nigeria’s insurance penetration currently stands at 0.5%.
The Insurance Sector Strengthening Programme (ISSP) is a 36- to 60-month industry-wide intervention designed to address structural barriers stifling adoption – low awareness, weak consumer trust, distribution gaps, limited capacity and poor access among women, youths and micro, small and medium enterprises. It is structured around six pillars: advocacy and policy support; awareness and education; capacity building; gender inclusion; youth engagement and innovation; and MSME and value-chain strengthening. The programme will cover all 36 states and the Federal Capital Territory.
Currently, only about 5% of Nigerians have insurance cover, while 78% lack basic knowledge of insurance. Women account for about 32% of policyholders, Nigerians aged 18-35 represent less than 20% of the customer base, while only about 8% of MSMEs have insurance cover. NAICOM said the figures underline both the scale of opportunity and the depth of structural constraints limiting growth.
According to local media reports, the Commissioner for Insurance and NAICOM CEO, Mr Olusegun Omosehin, speaking at the ISSP launch, said the insurance industry could no longer afford to operate without addressing the low level of public awareness, limited coverage and declining confidence among consumers.
He said that sustainable growth in the industry requires collaboration, innovation, consumer confidence, professional competence and a shared commitment to deepening insurance penetration across all segments of society. He urged insurance brokers and other industry players to develop effective distribution frameworks that would enable Nigerians to access insurance products through channels that reflect changing consumer behaviour.
He also stressed the importance of the prompt settlement of claims, saying the perception that insurance companies were more interested in collecting premiums than providing value must be eliminated.
Mr Omosehin listed digitalisation – including digital platforms, InsurTech and data-driven business models – as critical to widening access and responding to changing consumer expectations.
He added the industry had reached an inflection point where regulation must deliver measurable gains in coverage, service and trust. “Regulation must serve as both a shield for policyholders and a compass for responsible market development,” he said.