The National Insurance Commission (NAICOM) is intensifying its campaign to broaden the reach of Takaful insurance across Nigeria. This initiative is a core part of a larger plan to boost participation in the insurance sector and serve communities that have traditionally been left out.
A Watershed Law for Ethical Insurance
Commissioner for Insurance, Olusegun Omosehin, made this commitment in Abuja during a meeting with the Takaful Advisory Council (TAC). He identified the non-interest insurance model as a fundamental pillar for the industry's future expansion. Omosehin emphasized that Nigeria's vast and young population offers a substantial opportunity for Takaful to move beyond a specialized market, clarifying that the product is not limited to any specific religious group.
He pinpointed the core challenge for both operators and the regulator: transforming this latent potential into active engagement. This requires a concerted push on public awareness, innovative product design, and efficient distribution networks.
Overcoming Awareness and Building Capacity
Omosehin highlighted that NAICOM's current reform agenda is focused on fortifying the insurance market, safeguarding policyholders, and restoring public trust. He reaffirmed that the commission's developmental role is crucial for creating a robust and inclusive industry.
A landmark achievement, according to the Commissioner, was the signing of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 into law by President Bola Ahmed Tinubu on July 31. This act is a turning point for the sector as it formally integrates Takaful insurance into Nigeria's legal insurance structure. Omosehin described this development as a significant encouragement for operators and investors looking at ethical, non-interest financial products.
Stakeholders Call for Collaborative Action
Earlier in the meeting, the Chairman of the Takaful Advisory Council, Professor Abdulrazzaq Abdulmajeed Alaro (MNI), commended NAICOM on the enactment of the new insurance law, calling it unprecedented. Alaro noted that the council had sent a formal letter of appreciation to the commission and stated that this gathering was the first structured dialogue between TAC and NAICOM's top management.
Professor Alaro identified low public awareness as the single biggest obstacle hindering the growth of Takaful insurance. He urged the regulator to spearhead comprehensive industry enlightenment campaigns. His recommendations included:
- Organizing regular retreats and workshops.
- Implementing capacity-building programs.
- Ensuring these initiatives involve conventional insurers, Takaful operators, and other key stakeholders.
Concluding the engagement, Commissioner Omosehin projected that the future expansion of Nigeria's insurance sector will be significantly driven by inclusive segments. He specifically named:
- Microinsurance
- Takaful insurance
- Digital distribution platforms
To solidify this vision, NAICOM and the Takaful Advisory Council agreed to formalize their collaboration into an annual forum. This institutionalized engagement aims to systematically unlock the long-term potential of the non-interest insurance sub-sector.
