Commissioner for Insurance/CEO, NAICOM, Olusegun Ayo Omosehin.
BY NKECHI NAECHE-ESEZOBOR—The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee as part of efforts to strengthen consumer protection, boost confidence in the insurance industry, and enhance financial system stability under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Speaking at the inauguration ceremony, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the establishment of the committee as a major milestone in the implementation of NIIRA 2025 and a critical step toward building a more resilient insurance sector.
From left: Mr. Babatunde 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).
The Honourable Minister, represented by the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the insurance industry remains critical to risk management, financial protection, capital mobilisation, and sustainable economic growth.
He noted that the Federal Government, under President Bola Ahmed Tinubu, is committed to strengthening the insurance sector through reforms aimed at improving transparency, accountability, innovation, and investor confidence.
Oyedele said the newly enacted NIIRA 2025 introduces a modern risk-based regulatory framework aligned with global best practices and tailored to Nigeria’s evolving insurance market.
He explained that the legislation strengthens regulatory oversight, enhances policyholder protection, promotes market discipline, and creates a more investor-friendly environment for both local and foreign investors.
The minister stated that policyholder protection remains central to the reforms, stressing that public confidence is essential for the growth and sustainability of the insurance industry.
According to him, the IPPF will serve as a financial safety net for policyholders in cases of insurer distress or insolvency, while also helping to mitigate systemic risks and improve trust in the insurance ecosystem.
“The establishment of the IPPF Committee demonstrates our resolve to safeguard the interests of policyholders and ensure that, in the unlikely event of insurer distress or failure, policyholders are protected and their claims obligations are met in a timely and orderly manner,” he said.
He charged members of the committee to ensure that the fund is sustainably financed, transparently managed, and fully compliant with the provisions of NIIRA 2025.
Oyedele also reaffirmed the Federal Government’s commitment to collaborating with the National Insurance Commission (NAICOM) and other stakeholders to deepen insurance penetration, promote innovation, and strengthen the sector’s contribution to economic development.
In his opening remarks, the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin, said the inauguration marks a significant step toward deepening consumer protection and strengthening confidence in Nigeria’s insurance market.
He said the establishment of the IPPF Committee pursuant to Section 212 of NIIRA 2025 moves the industry “from policy intent to institutional protection.”
Omosehin explained that the fund would be used to address distress and insolvency among licensed insurers and reinsurers or cases involving cancellation of operating licences.
According to him, the IPPF is designed to protect policyholders and beneficiaries, ensure timely collection of contributions to the fund, establish sound management and investment practices, and promote transparency and accountability in its administration.
“The IPPF is a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations,” he said.
He added that the credibility of the fund would depend on disciplined governance, fairness, transparency, and operational efficiency.
Omosehin assured that NAICOM would provide the necessary regulatory oversight and technical support to ensure the committee succeeds in delivering effective protection for policyholders.
He urged members of the committee to approach their responsibilities with professionalism, integrity, and a strong commitment to protecting Nigerian insurance consumers.
According to him, successful implementation of the IPPF would strengthen trust in the insurance market, support financial inclusion, and contribute to broader economic stability.
