……Omosehin says NIIRA 2025 marks a shift from policy intent to enforceable protection as the new committee is charged with safeguarding millions of insurance policyholders nationwide.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin
Nigeria’s insurance industry entered a new phase of regulatory reform on Thursday as the National Insurance Commission (NAICOM) formally inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee in Abuja, describing the move as a decisive step toward strengthening consumer confidence and financial system stability.
The inauguration, held at Fraser Suites, FCT Abuja on 15 May 2026, brought together senior regulators, industry operators, and newly appointed committee members under a renewed framework established by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
At the centre of the event was the Commissioner for Insurance and Chief Executive Officer of National Insurance Commission, Olusegun Ayo Omosehin, who delivered a firm opening address positioning the IPPF as a structural safeguard for policyholders across the country.
From Reform Law to Institutional Action
Omosehin described the inauguration as the moment Nigeria moves from legislative intent to operational enforcement in protecting insurance consumers.
According to him, the establishment of the IPPF Committee under Section 212 of NIIRA 2025 represents a major institutional milestone designed to restore and deepen trust in the insurance sector.
He explained that the Fund is intended to serve as a financial safety net in cases where licensed insurers or reinsurers become insolvent or have their operating licences revoked by regulators.
Beyond compensation, he noted, the Fund is designed to preserve confidence in insurance as a reliable promise, while protecting households, businesses, and the broader economy from avoidable financial shocks.
Core Mandate: Protection, Accountability, and Financial Discipline
Outlining the Committee’s statutory responsibilities, the NAICOM boss emphasised that the IPPF must be guided by strong governance, transparency, and professional execution.
The Committee’s key functions include:
Ensuring protection of policyholders and beneficiaries under valid insurance contracts
Guaranteeing the timely and accurate collection of contributions into the Fund
Establishing prudent investment and asset management frameworks
Creating transparent procedures for the disbursement and recovery of funds
Promoting accountability, oversight, and governance integrity in Fund operations
Omosehin stressed that the Fund will also play a critical role in resolving distress situations involving insurers and reinsurers, including insolvency cases or licence cancellations.
“Not a Ceremonial Appointment,” Says NAICOM Boss
In a strongly worded message to the newly inaugurated Committee, Omosehin cautioned that their assignment must be treated as a national responsibility rather than a symbolic appointment.
“This inauguration is not ceremonial; it is the start of a serious governance responsibility,” he said.
He outlined three pillars that will define the credibility and effectiveness of the Fund:
Financial discipline: ensuring timely contributions, strong asset stewardship, and effective controls to safeguard sustainability
Fair protection framework: guaranteeing transparency, consistency, and speed in claims and disbursement processes
Transparency and accountability: maintaining public trust through clear reporting and strict governance standards
He added that the success of the IPPF would ultimately be judged not by its establishment, but by its effectiveness in real-life crisis situations affecting policyholders.
Regulatory Oversight and Industry Ownership
While reaffirming NAICOM’s supervisory role, Omosehin emphasised that the Fund must operate with independence and professionalism, even as it remains under regulatory oversight.
From L to R: Mr. Babajide Fajemirokun (Member, IPPF Committee), Mr. Ekerete Ola Gam-Ikon (Dep. Commissioner for Insurance, Finance & Acct.), Mrs. Oluwatoyin Medinah Bello (Dep. Director Inspectorate, NAICOM), Mr. Raymond Omachi (Perm Secretary, FMF rep. the Hon. Minister of Finance and Coordinating Minister of the Economy), Mr. Oye Hassan Odukale (Chairman IPPF Committee), Mr. Olusegun Ayo Omosehin (CFI), Mrs. Yetunde Ilori (Member, IPPF Committee), Okiemute Sagua (representative of Meristem Wealth Management Ltd, Fund Managers) and Dr. Usman Jankara (Member, IPPF Committee) during the inauguration ceremony today at Abuja
He noted that the guidelines governing the IPPF are carefully designed to strike a balance between protecting policyholders and maintaining the financial health and competitiveness of insurers.
However, he warned that achieving this balance will require discipline, technical competence, and consistent application of sound judgment by the Committee.
Strengthening Trust in Nigeria’s Insurance Market
Industry stakeholders at the event described the IPPF as a potentially transformative instrument that could reshape consumer perception of insurance in Nigeria.
Omosehin echoed this sentiment, stating that effective implementation of the Fund would strengthen trust in the sector, deepen market participation, and support Nigeria’s broader financial inclusion agenda.
He also highlighted the human dimension of insurance, noting that millions of Nigerians depend on insurance protection for their homes, businesses, health, and future security.
A New Phase of Insurance Reform
The inauguration of the IPPF Committee is widely seen as one of the early major implementations of NIIRA 2025, a law aimed at modernising Nigeria’s insurance industry and strengthening its resilience against systemic risks.
With the Committee now formally in place, attention will shift to execution—particularly how efficiently the Fund is structured, financed, and activated in times of insurer distress.
As the ceremony concluded, Omosehin charged the Committee to justify the confidence placed in them through professionalism, integrity, and delivery.
The message from Abuja was clear: Nigeria’s insurance reform is no longer aspirational—it is operational, and its success will be measured by how effectively it protects ordinary policyholders when it matters most.
NAICOM has inaugurated the Insurance Policyholders’ Protection Fund Committee in Abuja under NIIRA 2025, with Commissioner Olusegun Ayo Omosehin saying the reform strengthens consumer protection and insurance market confidence in Nigeria.
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