k–R: Dr. Hamim Ahmad Mokhtar, Lead Specialist/Project Lead (Malaysia); Erfanul Alam Siddiquee, Specialist (Bangladesh); Mr. Olusegun Ayo Omosehin, Commissioner for Insurance, National Insurance Commission; and Dr. Hassan Scott Odierno, Consultant (USA).
The National Insurance Commission (NAICOM) has stepped up efforts to strengthen Nigeria’s Takaful insurance market following the successful completion of a five-day Diagnostic Assessment Mission by experts from the Islamic Financial Services Board (IFSB).
The Commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, on Friday, August 21, 2026, hosted a high-level IFSB delegation led by Dr. Hamim Syahrum Ahmad Mokhtar, who briefed the Commission on the preliminary outcomes of the assessment.
The mission involved extensive engagements with key stakeholders across Nigeria’s Takaful ecosystem, including regulators, Takaful operators, industry associations and development partners.
NAICOM Targets Takaful as a Driver of Insurance Inclusion
Speaking during the meeting, Omosehin reaffirmed NAICOM’s commitment to unlocking the potential of Takaful as a strategic instrument for expanding insurance penetration and deepening financial inclusion in Nigeria.
He stressed that the Commission expects the IFSB’s assessment to produce frank, practical and data-driven recommendations capable of supporting ongoing regulatory reforms and accelerating the development of the Takaful market.
According to the Commissioner, Takaful should be viewed as an alternative insurance model rather than merely a subset of conventional insurance, with the potential to serve a broad range of consumers while operating within established Shariah governance principles.
Risk-Based Capital, Transparency Take Centre Stage
Omosehin highlighted the need to strengthen Nigeria’s regulatory and supervisory architecture to support the long-term sustainability of the Takaful market.
Key areas identified include stronger risk-based capital and supervisory frameworks, improved data transparency and prudent surplus management practices.
These measures, he noted, are critical to protecting participants while ensuring that Takaful operators remain financially sound, resilient and capable of delivering sustainable value to policyholders and other stakeholders.
IFSB Diagnostic Mission Identifies Reform Priorities
The preliminary findings presented by the IFSB delegation identified a number of measures aimed at strengthening the legal, regulatory and supervisory framework governing Takaful operations in Nigeria.
The recommendations are expected to provide an important roadmap for addressing structural and market-development challenges while creating an environment capable of encouraging responsible innovation and sustainable growth.
The diagnostic assessment also underscores the importance of aligning Nigeria’s Takaful regulatory architecture with appropriate international standards and good supervisory practices.
Partnership Expected to Boost Consumer Confidence
NAICOM described its collaboration with the IFSB as a significant milestone in the Commission’s efforts to build a robust, resilient and internationally aligned Takaful ecosystem.
The partnership is expected to contribute to greater financial stability, stronger consumer and policyholder protection, increased confidence in Takaful products and services, and responsible innovation across Nigeria’s insurance industry.
For a market seeking to increase insurance participation among underserved and financially excluded segments, the strengthening of Takaful could provide an additional avenue for bringing more Nigerians into the formal insurance system.
Comprehensive Report to Follow
NAICOM said a comprehensive report on the Diagnostic Assessment Mission will be released after the completion of the review process and incorporation of feedback from relevant stakeholders.
The report is expected to provide more detailed recommendations on the regulatory, supervisory and market-development measures required to unlock the full potential of Takaful in Nigeria.
The Ameh News Corporate Perspective
The Ameh News sees the NAICOM–IFSB collaboration as an important regulatory development to watch, particularly as Nigeria seeks to deepen insurance penetration, strengthen consumer protection and broaden financial inclusion.
The success of the initiative, however, will ultimately depend on how effectively the diagnostic recommendations are translated into clear regulatory reforms, stronger supervision, better market data, sound capital management and innovative Takaful products that meet the needs of Nigerian consumers.
The emerging Takaful framework therefore represents more than a niche insurance initiative; it could become an important component of Nigeria’s broader strategy to build a more inclusive, resilient and sustainable insurance industry.
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