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The National Insurance Commission (NAICOM) has identified Takaful as a potential driver of insurance penetration, financial inclusion and sustainable economic development in Nigeria.
The Commissioner for Insurance and Chief Executive of NAICOM, Olusegun Omosehin, made the position known while receiving a delegation from the Islamic Financial Services Board (IFSB) following a five-day diagnostic assessment of Nigeria’s Takaful sector.
Omosehin said Takaful should not be treated simply as an alternative or smaller segment of conventional insurance, arguing that the model could serve a wider range of consumers while operating within established Shariah governance principles.
He called for practical, evidence-based recommendations from the IFSB to guide regulatory reforms and support the sustainable development of Nigeria’s Takaful market.
According to the NAICOM chief, strengthening the sector would require improvements across its regulatory framework, risk management, data transparency and supervisory processes.
He specifically highlighted the need to strengthen risk-based capital and supervisory frameworks, improve the quality and availability of industry data, and establish prudent approaches to surplus management.
These measures, he said, would help protect Takaful participants while strengthening the long-term sustainability and resilience of the market.
IFSB assesses Nigeria’s Takaful framework
The IFSB delegation, led by Dr Hamim Syahrum Ahmad Mokhtar, presented NAICOM with preliminary findings from its diagnostic assessment of the Nigerian Takaful sector.
The assessment involved consultations with regulators, Takaful operators, industry associations and development partners to identify gaps and opportunities for strengthening the market.
The review focused on measures that could improve Nigeria’s legal, regulatory and supervisory framework for Takaful and support the development of a more robust operating environment.
For NAICOM, a stronger regulatory structure is essential to building confidence among consumers and market participants as the sector expands.
The Commission said its collaboration with the IFSB represents an important step towards developing a more resilient Takaful ecosystem capable of contributing to financial stability, consumer protection, responsible innovation and financial inclusion.
Takaful operates on principles of mutual assistance and shared risk, offering an alternative model for consumers who may be underserved by conventional insurance products.
With insurance penetration in Nigeria remaining relatively low, regulators and industry stakeholders have continued to explore new approaches to bringing more individuals and businesses into the formal insurance system.
NAICOM said the IFSB’s final assessment report would be released after the review process is completed and feedback from relevant stakeholders has been incorporated.
The recommendations are expected to provide further guidance on regulatory and supervisory reforms needed to strengthen Nigeria’s Takaful market and unlock its potential as part of the country’s broader financial inclusion and insurance development agenda.
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