The Federal Government (FG) has launched a strategic initiative to extend financial protection to millions of uninsured Nigerians.
This move, marking the initial major phase of the newly signed Aso Accord, brings together the country’s leading financial and insurance regulators in a unified effort to reshape Nigeria’s insurance industry.
During a roundtable on Tuesday, the Deputy Chief of Staff to the President (Office of the Vice President), Ibrahim Hadejia, announced that the roundtable’s outcomes would be submitted to the National Economic Council (NEC).
He underscored the economic necessity of financial inclusion through insurance, stating, “We cannot build a resilient economy while millions of citizens remain financially vulnerable.”
Hadejia emphasized, “Financial inclusion, especially through accessible insurance, is the critical driver that will propel Nigeria toward sustainable economic growth.”
Deputy Commissioner Technical at the National Insurance Commission, Jankara Usman, also highlighted the initiative’s transformative potential, stating, “Inclusive insurance offers affordable, customized products that foster financial preparedness and enhance social well-being.”
He cited World Bank data showing that only two out of five adults in sub-Saharan Africa can raise $35 within 30 days, underscoring financial vulnerability in the region.
Usman pointed out, “In Nigeria, insurance penetration is at a concerning 3.3%, well below global standards.”
Additionally, Technical Advisor to the President on Economic and Financial Inclusion, Nurudeen Zauro, noted the meeting as evidence of President Bola Tinubu’s administration’s commitment to revitalizing the insurance sector.
He explained that the government has set up a monitoring framework to ensure effective implementation of the decisions made during the roundtable.
This includes establishing specialized committees for financial oversight, developing risk management programs for smallholder farmers, fostering public-private partnerships, strengthening inter-agency collaboration, and streamlining processes for innovative insurance solutions.
The roundtable generated several forward-looking proposals to broaden insurance access.
Key initiatives include enabling insurance purchases via mobile airtime, creating specialized micro-insurance products for low-income groups, integrating blockchain for streamlined insurance services, and developing digital platforms tailored for agricultural insurance.
The initiative has received strong backing from key institutions, including the Nigeria Insurance Association (NIA), National Health Insurance Authority (NHIA), Central Bank of Nigeria (CBN), and other regulatory bodies.
