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Nigeria Government has commended Malaysia’s Takaful Insurance Model and has shown interest to probably copy and modify it to suit our local environment.
The Chief Executive Officer of the National Insurance Commission NAICOM, and Nigeria’s Commissioner for Insurance Mr. Olusegun Ayo Omosehin indicated this interest when he played host to the Malaysian High Commissioner to Nigeria Mr. Aiyub Omar.
The envoy had visited the commissioner where discussions on insurance partnership were discussed.
Mr. Omosehin, described Malaysia’s Takaful Insurance Industry as phenomenal. He sought to unlock the secrets of Malaysia’s success in Takaful insurance development, calling for collaboration with Mr. Aiyub Omar, the Malaysian High Commissioner. This collaboration was accepted in two key areas: capacity building and investment opportunities.
During the visit, the CFI welcomed Mr. Aiyub Omar,, to his office in Abuja on Thursday, January 9, 2025 at the Commission’s Headquarters.
The CFI kicked off the meeting by introducing his team members, setting the tone for a productive discussion. He then delved into the core functions of the Commission, emphasizing its dual role in regulating the insurance industry’s business activities and driving growth and development in Nigeria.
To achieve the latter, the CFI suggested studying countries with similar characteristics, such as Malaysia, which has witnessed rapid growth in Takaful Insurance over the past three decades. This approach would enable the Commission to identify best practices, gain valuable insights, and adapt strategies that have proven success in similar markets.
By exploring international models and benchmarking against industry leaders, the Commission aims to create a more conducive environment for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike.
The Commissioner further stressed the importance of knowledge sharing to replicate successful models in Nigeria, particularly in achieving President Bola Tinubu’s vision of a $1 trillion economy. This goal, aimed to be accomplished within eight years, relies heavily on collaborations with foreign governments, including Malaysia.
Given Nigeria’s low insurance penetration, the potential for growth and investment is substantial. Notably, the country has made progress in the Takaful insurance sector, expanding from a single company in 2013 to six companies currently under the National Insurance Commission’s regulation.
To tap into this potential, the CFI emphasized the need for knowledge sharing and strategic partnerships. By learning from Malaysia’s experiences and best practices, Nigeria can accelerate its economic growth and development, ultimately achieving the ambitious goal of a $1 trillion economy.
The CFI brought to the Malaysian High Commissioner’s attention the newly passed insurance bill by the Senate, which now awaits concurrence from the House of Representatives. This bill is expected to significantly boost capital in the insurance industry and create new investment opportunities. By enhancing the regulatory framework, the bill seeks to promote the growth and development of the insurance industry in Nigeria, ultimately contributing to the country’s economic growth.
The Malaysian High Commissioner in response said he was thrilled by the reception by the National Insurance Commission and expressed his enthusiasm for collaboration. He highlighted Malaysia’s expertise in Takaful Insurance, emphasizing the potential for bilateral agreements to drive growth in Nigeria’s insurance industry, particularly in the Takaful sector.
Noting NAICOM’s strong interest in developing the industry, the High Commissioner pledged to facilitate connections between Malaysian Takaful insurance companies and Nigerian stakeholders, paving the way for further investment and cooperation. This partnership could leverage Malaysia’s experience in Takaful insurance, which has been a significant contributor to the country’s Islamic finance sector.
The Malaysian High Commissioner expressed interest in capacity building for NAICOM staff, proposing a training program led by Malaysian resource personnel. This program will aim to enhance the skills and knowledge of NAICOM staff as regulators, ultimately adding value to the Nigerian insurance industry.
This initiative aligns with NAICOM’s goals, which include strengthening supervisory capabilities, improving safety and soundness, and fostering innovation and sustainability in the Nigerian insurance industry. By collaborating with Malaysian experts, NAICOM can leverage international best practices to achieve these objectives.
Present in the meeting was the Deputy Commissioner Technical, Mr. Usman Jankara, Deputy Commissioner Finance and Administration, Mr. Ekerete Ola Gam-Ikon the Director, Legal and Enforcement & Market Development, Dr. Talmis Usman and others.