NAICOM issues Policyholders’ Protection Fund guidelines, mandates May 31 deadline for insurers
National Insurance Commission NAICOM
Nike Popoola
The National Insurance Commission (NAICOM) has released new guidelines for the collection, management, and administration of the Insurance Policyholders’ Protection Fund (IPPF), aimed at strengthening policyholder protection and boosting confidence in Nigeria’s insurance sector.
In a circular dated April 7, 2026, and addressed to all insurance institutions, the Commission said the directive was issued pursuant to powers conferred on it by the Nigerian Insurance Industry Reform Act 2025 and other extant laws.
NAICOM stated that the guidelines provide a comprehensive regulatory framework to ensure clarity, improve compliance, and standardise processes relating to the Fund. The IPPF serves as a statutory safety net designed to protect policyholders in the event of financial distress or insolvency of a licensed insurer or reinsurer.
The Commission noted that the framework also includes provisions guiding the reimbursement of loans by insurers or reinsurers.
As part of the implementation timeline, NAICOM directed that IPPF Assessment Returns for the 2025 financial year must be submitted on or before May 31, 2026. It added that subsequent submissions must comply with Section 4.3 of the guidelines.
“All insurers, reinsurers, and relevant insurance institutions are required to ensure strict compliance with this Guidelines,” the circular stated.
The directive was signed by Deputy Director, Special Risk & Security Analysis, John Falade, on behalf of the Commissioner for Insurance.
Industry stakeholders are expected to review the guidelines closely, as the move signals tighter regulatory oversight and a renewed push to safeguard policyholders’ interests across the insurance value chain.
