FG to provide financial protection for uninsured citizens
Abdullateef Fowewe
The Federal Government of Nigeria has launched a comprehensive initiative to provide financial protection for millions of uninsured citizens.
This program, part of the recently signed Aso Accord, aims to reshape the nation’s insurance landscape by collaborating with top financial and insurance regulators.
This was revealed in a statement on Tuesday by the Senior Special Assistant to The President on the Media & Communications (Office of The Vice President), Stanley Nkwocha.
During a roundtable meeting, Deputy Chief of Staff Ibrahim Hassan Hadejia (Office of The Vice President) emphasised the importance of insurance access for economic resilience, stating that financial inclusion is crucial for sustainable growth.
The initiative includes innovative proposals such as allowing insurance purchases via mobile airtime and developing micro-insurance products for low-income individuals. A monitoring framework will ensure effective implementation and collaboration among various stakeholders in the insurance sector.
Hadejia said, “This marks the first time insurance is being formally recognised as a critical financial service in Nigeria’s economic framework.”
Hadejia explained that financial inclusion through insurance is an economic imperative, saying, “We cannot build a resilient economy while leaving millions of our citizens financially exposed.
“Financial inclusion, particularly through insurance access, serves as the crucial driver that will propel Nigeria toward sustainable economic growth,” he added.
According to Nkwocha the Deputy Commissioner Technical at the National Insurance Commission Dr Jankara Usman, had earlier outlined the transformative potential of the initiative for Nigeria.
Usman said, “Through inclusive insurance, we can provide tailored, affordable products that promote financial readiness and advance social well-being.”
Usman quoted World Bank data that paints a stark picture of financial vulnerability in the region, revealing that only two out of five adults in sub-Saharan Africa can raise $35 within 30 days.
“In Nigeria, insurance penetration remains at a concerning 3.3%, significantly below global standards,” he added.
In his remarks, Technical Advisor to the President on Economic and Financial Inclusion, Dr Nurudeen Zauro, said the meeting demonstrates President Bola Tinubu’s administration’s commitment to the insurance sector.
He explained that the government has established a monitoring framework to ensure effective implementation of the decisions made during the roundtable, with a specific focus on forming specialised committees for financial control, developing risk management programmes for smallholder farmers, fostering public-private partnerships, strengthening inter-agency collaboration and simplifying processes for innovative insurance products.
“The roundtable produced several innovative proposals aimed at expanding insurance access, including enabling insurance purchases through mobile phone airtime, development of specialised micro-insurance products for low-income segments, integration of blockchain technology for insurance delivery and creation of digital platforms specifically for agricultural insurance coverage
“The initiative has garnered widespread support from major institutions, including the Nigeria Insurance Association (NIA), National Health Insurance Authority (NHIA), Central Bank of Nigeria (CBN), and various other regulatory bodies,” Nkwocha had written.
