***Raise penetration to 1.5% of GDP by 2028

Stakeholders in Nigeria’s insurance industry on Thursday unveiled a new national initiative aimed at reaching 25 million Nigerians with insurance literacy and financial education as part of efforts to deepen insurance penetration and strengthen confidence in the sector.

The Insurance Sector Strengthening Programme (ISSP), formally launched in Abuja on Thursday, is also targeting an increase in Nigeria’s insurance penetration from about 0.5 per cent to 1.5 per cent of Gross Domestic Product (GDP) by 2028.

The initiative is designed to expand insurance access among women, young people and micro, small and medium enterprises (MSMEs), while strengthening the capacity of insurance professionals and improving the industry’s use of digital platforms.

The programme is structured around six pillars: advocacy and policy support; awareness and education; capacity building; gender inclusion; youth engagement and innovation; and MSME and value-chain strengthening.

Speaking at the launch, the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, said the initiative marked an important milestone in efforts to build an insurance industry that responds to the needs of Nigerians and the economy..

According to reports, only five per cent of Nigeria’s 220 million people currently have insurance coverage, 78 per cent of Nigerians lack basic understanding of insurance products, and just eight per cent of the country’s 40 million MSMEs carry any form of insurance coverage.

Omosehin said the insurance industry could no longer afford to operate without addressing the low level of public awareness, limited coverage and declining confidence among consumers.

According to him, sustainable growth in the industry requires collaboration, innovation, consumer confidence, professional competence and a shared commitment to deepening insurance penetration across all segments of society.

He identified limited public understanding of insurance products, inadequate opportunities for women and young people, capacity gaps, distribution challenges and trust issues as some of the factors constraining the sector.

The commissioner said the ISSP would provide a structured response through six key pillars comprising advocacy and policy support, awareness and education, capacity building, gender inclusion, youth engagement and innovation, and MSME and value-chain development.

Under the programme, organisers said the initiative would seek to reach 25 million Nigerians with insurance literacy and financial education, train 6,000 insurance professionals and intermediaries.

It would also achieve 40 per cent female participation as policyholders and industry professionals, raise youth participation in the insurance market to 30 per cent and connect 250,000 MSMEs to affordable insurance solutions.

Omosehin said increasing insurance coverage would require the industry to change how it engages with Nigerians, particularly young people who increasingly rely on digital platforms.

He noted that the average Nigerian consumer was becoming more digitally connected and would expect convenience, transparency and personalised solutions.

“The average age of Nigerians today, if you take the average age, you have an idea of what it is. Where do these people live? They live on their mobile phone,” he said.

He challenged insurance brokers and other industry players to develop effective distribution frameworks that would enable Nigerians to access insurance products through channels that reflect changing consumer behaviour.

He also stressed the importance of prompt settlement of genuine claims, saying the perception that insurance companies were more interested in collecting premiums than providing value must be eliminated.

Speaking, Chairman of the committee, Senator Adetokunbo Abiru, said the launch came at a defining moment for Nigeria’s economic transformation.

Abiru who was represented by his special adviser, Victor Inedu said a strong insurance industry was necessary to protect lives and assets, support businesses, mobilise long-term capital and provide the confidence required for investment and economic growth.

He said Nigeria’s insurance market remained significantly underdeveloped, with millions of individuals and businesses still uninsured or underinsured.

The senator commended NAICOM’s regulatory reforms, particularly the recently concluded recapitalisation exercise, saying stronger and better-capitalised insurance institutions would be better positioned to underwrite large risks, support infrastructure and major investments, and protect businesses and households.

He, however, stressed that legislation and regulation alone could not transform the industry without effective implementation.

Abiru said the National Assembly had demonstrated commitment to strengthening the institutional framework of the industry through the enactment of the Nigeria Insurance Industry Reform Act 2025.

The senator said the transformation of the sector required collaboration among the executive, legislature, NAICOM, industry operators, professionals and the public.

“We must move insurance from the margins to the mainstream of Nigeria’s economic development,” he said.

Also speaking, the Trade Commissioner representing the High Commission of Canada in Nigeria, Funmike Sojinuga, said a strong insurance sector was essential to building confidence in Nigeria’s economy and attracting investment.

Sojinuga said investment did not only follow opportunity but also confidence in institutions, regulation, governance and the ability to manage risks effectively.

She commended the ISSP’s collaboration with the Canadian insurance sector, saying the partnership could support regulatory excellence, innovation and market growth.

Team Lead at the ISSP design team and Managing Director at EMDI Capacity Development Ltd, Bukola Ifemade said Nigeria’s insurance sector requires urgent, coordinated action to unlock its trillion-naira potential

“This flag-off marks the beginning of that mobilization, success from here requires strong partnerships and sustained commitment to innovation and inclusion”, he said.

ISSP is led by a multidisciplinary design team spanning insurance, finance, innovation, digital strategy, and international development, including Bukola Ifemade (Team Lead), Peter C. Braid (International Advisor, Canada and CEO of the Insurance Brokers Association of Canada), Bankole Oloruntoba (Innovation Expert, Nigeria Climate Innovation Centre), Rashidat M. Adebisi (Insurance and Finance Lead, AXA Mansard Insurance Plc), and Dr. Betty Adepoju (Digital Strategy Lead, Scallop Media and Technology).