FG inaugurates policyholders’ protection fund committee to strengthen insurance sector
From L to R: Mr. Babatunde Fajemirokun (Member, IPPF Committee), Mr. Ekerete Ola Gam-Ikon (Dep. Commissioner for Insurance, Finance & Acct.), Mrs. Oluwatoyin Medinah Bello (Dep. Director Inspectorate, NAICOM), Mr. Raymond Omachi (Perm Secretary, FMF rep. the Hon. Minister of Finance and Coordinating Minister of the Economy), Mr. Oye Hassan Odukale (Chairman IPPF Committee), Mr. Olusegun Ayo Omosehin (CFI), Mrs. Yetunde Ilori (Member, IPPF Committee), Okiemute Sagua (representative of Meristem Wealth Management Ltd, Fund Managers) and Dr. Usman Jankara (Member, IPPF Committee).
Nike Popoola
The Federal Government and the National Insurance Commission have inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee as part of efforts to strengthen consumer protection, boost confidence in Nigeria’s insurance industry, and enhance financial system stability.
Speaking at the inauguration ceremony held at Fraser Suites, Abuja, on Friday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the event as a major milestone in the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Oyedele said the establishment of the committee demonstrates the Federal Government’s commitment to building a stronger, more resilient, and globally competitive insurance sector capable of supporting sustainable economic growth.
According to him, the insurance industry remains a critical pillar of every modern economy because it provides financial protection, supports risk management, mobilises capital, and encourages business investments.
He noted that Nigeria’s insurance sector holds significant untapped potential and can play a more strategic role in infrastructure financing, financial inclusion, and contribution to Gross Domestic Product (GDP) with stronger regulation and increased public confidence.
“The Federal Government under the leadership of President Bola Ahmed Tinubu recognises that a robust, efficient, and trustworthy insurance sector is essential to achieving broader economic objectives, including diversification and sustainable development,” he said.
The minister explained that NIIRA 2025 introduced a modern risk-based regulatory framework aligned with global best practices, strengthened policyholder protection mechanisms, improved regulatory oversight, and promoted transparency and market discipline.
Also speaking, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, said the inauguration marked a significant step toward deepening trust in Nigeria’s insurance market.
Omosehin described the IPPF as a statutory safety net established pursuant to Section 212 of NIIRA 2025 to protect policyholders when insurers become insolvent or unable to meet their obligations.
He said the committee’s mandate includes ensuring timely collection of contributions to the fund, establishing sound management and investment practices, developing procedures for disbursement and recovery of loans, and promoting transparency, accountability, and good governance.
“The fund shall be used for the purpose of resolving distress and insolvencies of licensed insurers and reinsurers or as a result of cancellation of licence,” he stated.
According to him, the value of the fund goes beyond compensation as it would protect households and businesses from avoidable losses while reinforcing confidence in insurance as a reliable financial safeguard.
Both officials charged members of the committee to discharge their responsibilities with professionalism, integrity, and transparency, noting that the credibility of the IPPF would depend on disciplined governance and fair administration.
Oyedele further said the IPPF would provide a financial safety net for policyholders, mitigate systemic risks, and align Nigeria with international best practices on policyholder protection schemes.
Omosehin assured the committee of NAICOM’s regulatory oversight and technical support, while emphasising that the fund must be administered independently and professionally in the interest of policyholders.
The two officials expressed confidence that effective implementation of the fund would deepen insurance penetration, strengthen financial inclusion, and support sustainable economic growth in Nigeria.
