Yemisi Izuora
Nigerian Government has announced buffer a strategy that will provide financial protection for millions of Nigerians without insurance coverage.
The initiative, which marks the first major implementation phase of the recently signed Aso Accord, brings together the nation’s top financial and insurance regulators in a collaboration to transform Nigeria’s insurance landscape.
Speaking at a roundtable meeting on Tuesday, Deputy Chief of Staff to the President (Office of the Vice President), Senator Ibrahim Hadejia, said outcomes of the roundtable would be presented to the National Economic Council.
Senior Special Assistant to the Vice President on Media and Communication, Stanley Nkwocha, made the announcement in a statement he signed Tuesday titled ‘Citizens without insurance access to get FG’s financial protection.’
“This marks the first time insurance is being formally recognised as a critical financial service in Nigeria’s economic framework,” Hadejia stated.
He explained that financial inclusion through insurance is an economic imperative, saying, “We cannot build a resilient economy while leaving millions of our citizens financially exposed. Financial inclusion, particularly through insurance access, serves as the crucial driver that will propel Nigeria toward sustainable economic growth.”
Earlier, Deputy Commissioner Technical at the National Insurance Commission, Dr Jankara Usman, outlined the transformative potential of the initiative for Nigeria.
He said, “Through inclusive insurance, we can provide tailored, affordable products that promote financial readiness and advance social well-being.”
Usman cited World Bank data that paints a stark image of financial vulnerability in the region, revealing that only two out of five adults in sub-Saharan Africa can raise $35 within 30 days.
“In Nigeria, insurance penetration remains at a concerning 3.3 per cent, significantly below global standards,” he said.
In his remarks, Technical Advisor to the President on Economic and Financial Inclusion, Dr Nurudeen Zauro, said the meeting demonstrates President Bola Tinubu’s administration’s commitment to the insurance sector.
Zauro explained that the government has established a monitoring framework to ensure effective implementation of the decisions made during the roundtable, with a specific focus on forming specialised committees for financial control, developing risk management programmes for smallholder farmers, fostering public-private partnerships, strengthening inter-agency collaboration and simplifying processes for innovative insurance products.
The roundtable produced several innovative proposals aimed at expanding insurance access, including enabling insurance purchases through mobile phone airtime, development of specialised micro-insurance products for low-income segments, integration of blockchain technology for insurance delivery and creation of digital platforms specifically for agricultural insurance coverage.
“The initiative has received support from major institutions, including the Nigeria Insurance Association, National Health Insurance Authority, Central Bank of Nigeria, and various other regulatory bodies,” Nkwocha concluded.