NAICOM Partners with Malaysia to Boost Takaful Insurance Growth in Nigeria

The National Insurance Commission (NAICOM) On Thursday, January 9, 2025, hosted a momentous meeting that underscored the potential of international collaboration to transform Nigeria’s insurance sector. At its Abuja headquarters, the Commissioner for Insurance and CEO of NAICOM, Mr. Olusegun Ayo Omosehin, welcomed Mr. Aiyub Omar, the Malaysian High Commissioner to Nigeria, in a strategic courtesy visit that promised to reshape the nation’s approach to insurance development.

The meeting began with an introduction of NAICOM’s senior management team, setting the stage for a dynamic exchange of ideas. Mr. Omosehin, reflecting on NAICOM’s regulatory and developmental mandates, spotlighted the immense growth potential of Nigeria’s insurance sector. Drawing comparisons with Malaysia’s success in Takaful insurance—a specialized Islamic insurance model—he identified Malaysia as an exemplary benchmark for Nigeria’s aspirations.

Over the past three decades, Malaysia has emerged as a global leader in Takaful insurance, achieving remarkable penetration and integration within its Islamic finance sector. Inspired by this trajectory, Mr. Omosehin proposed a collaborative framework to replicate Malaysia’s success in Nigeria. This approach aligns with President Bola Tinubu’s ambitious vision of transforming Nigeria into a $1 trillion economy within the next eight years.

The Commissioner emphasized the critical role of knowledge sharing and strategic partnerships in achieving these goals. With Nigeria’s Takaful insurance sector already expanding from a single operator in 2013 to six companies today, the potential for further growth is evident. NAICOM is committed to leveraging Malaysia’s expertise to advance this progress and accelerate the industry’s contribution to economic development.

Highlighting a significant milestone, Mr. Omosehin informed the High Commissioner of the recently passed insurance bill, which awaits final approval in the House of Representatives. This legislation is set to revitalize the insurance industry by increasing capital inflows, enhancing regulatory frameworks, and creating new investment opportunities.

In his response, Mr. Aiyub Omar praised NAICOM’s forward-thinking approach and expressed Malaysia’s eagerness to collaborate. He emphasized Malaysia’s rich expertise in Takaful insurance and its willingness to foster bilateral agreements that would stimulate Nigeria’s insurance growth. Beyond business, he proposed capacity-building programs led by Malaysian experts to enhance NAICOM’s regulatory proficiency.

This proposal aligns seamlessly with NAICOM’s broader objectives, which include strengthening supervisory capabilities, fostering innovation, and ensuring sustainability within the sector. By adopting Malaysia’s best practices, Nigeria could unlock new opportunities in Takaful insurance, which remains an untapped goldmine for investment and economic growth.

The discussions concluded with a commitment to focus on two critical areas: capacity building for NAICOM staff and fostering investment opportunities in Nigeria’s insurance market. Both parties expressed optimism about the collaboration’s potential to transform Nigeria’s insurance landscape and set a global benchmark for growth in Takaful insurance.

Reflecting on the exchange, Mr. Omosehin lauded Malaysia’s Takaful insurance industry as “phenomenal” and reiterated the importance of unlocking its secrets for Nigeria’s benefit. The visit not only marked a pivotal step in Nigeria-Malaysia relations but also reinforced NAICOM’s determination to lead the nation’s insurance industry into a new era of growth and global competitiveness.

Attending this landmark meeting were top NAICOM officials, including Deputy Commissioner Technical, Mr. Usman Jankara; Deputy Commissioner Finance and Administration, Mr. Ekerete Ola Gam-Ikon; and Director of Legal and Enforcement & Market Development, Dr. Talmis Usman.