The National Insurance Commission (NAICOM) has renewed efforts to expand Takaful insurance as part of a broader strategy to deepen participation in Nigeria’s insurance market and reach underserved segments of the population.
The Commissioner for Insurance, Olusegun Omosehin, gave the assurance in Abuja while receiving members of the Takaful Advisory Council (TAC) on a courtesy visit, describing the non-interest insurance model as a key growth pillar for the industry.
Omosehin said Nigeria’s large and youthful population presents significant opportunities for Takaful insurance to expand beyond its perceived niche, stressing that the model is not restricted to any religious group.
According to him, the challenge for operators and regulators is to convert this potential into wider participation through increased awareness, product innovation, and effective distribution channels.
He noted that NAICOM’s ongoing reforms are aimed at strengthening the insurance market, protecting policyholders, and rebuilding public confidence, adding that the commission’s developmental mandate remains central to building a resilient and inclusive industry.
The Commissioner further said the signing of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 into law by President Bola Ahmed Tinubu on July 31 marked a watershed moment for the sector, as it provides clear legal recognition for Takaful insurance within Nigeria’s insurance framework.
He described the development as a major boost for operators and investors interested in ethical and non-interest financial products.
Earlier, TAC Chairman, Professor Abdulrazzaq Abdulmajeed Alaro (MNI), congratulated NAICOM on the enactment of the new insurance law, describing it as unprecedented in the history of the industry.
Alaro said the Council had formally written to the commission to express its appreciation, noting that the meeting marked the first structured engagement between TAC and NAICOM’s management.
He identified low public awareness as the biggest constraint to the growth of Takaful insurance and urged the regulator to intensify industry-wide enlightenment. He also called for regular retreats, workshops, and capacity-building programmes involving conventional insurers, Takaful operators, and other stakeholders.
At the close of the meeting, Omosehin said future growth in Nigeria’s insurance sector would increasingly come from inclusion-driven segments, including microinsurance, Takaful insurance, and digital distribution platforms.
He added that NAICOM and the Takaful Advisory Council had agreed to institutionalise their engagement as an annual forum to unlock the sub-sector’s long-term potential.
