Nigeria: Insurance NGO Urges Urgent Regulatory Reforms from New NAICOM Management

Transparent Protection Ltd/Gte, an insurance Non-Governmental Organisation (NGO), has called on the new management of the National Insurance Commission (NAICOM) to expedite regulatory reforms to rescue the sector.

Dr. Sam Onyeka, Lead Director of TPL/Gte, addressed reporters in Abuja on Friday, stressing the critical need for urgent reforms to revitalize the insurance industry, which he claimed was on the brink of collapse.

Onyeka emphasized the necessity for the new management to swiftly enhance the Commission’s regulatory framework by establishing a robust Information Communication Technology (ICT) platform. Such a platform, he argued, would facilitate online monitoring and regulatory functions while also reducing operational costs.

The lead director advocated for the relocation of supervisory operations to Lagos, the hub of most insurance operators, suggesting that decentralization could empower states to handle claims originating within their jurisdictions.

“Onyeka suggested that NAICOM’s insurance bureau, currently a unit within the Commission, be elevated to department status with a director, given its pivotal role in handling claims and complaints,” the statement read.

“Onyeka also warned that without effective regulation, the insurance industry in Nigeria could face imminent collapse, highlighting the necessity for stringent monitoring to ensure market discipline.”

Moreover, Onyeka recommended the consideration of urgent reforms, including staff rationalization and the enhancement of IT capabilities. He also proposed potential revisions to existing laws, such as exempting NAICOM from the 50% statutory revenue deduction and possibly increasing the insurance supervisory levy.

In response to the call for reform, the newly appointed Commissioner for Insurance (CFI), Mr. Olusegun Omosehin, expressed confidence in steering the sector toward vibrancy and efficiency.

Omosehin, who officially assumed office on Friday, pledged to set a new trajectory for Nigeria’s insurance industry, aligning its growth with the government’s economic aspirations.

“The Federal Government aims to achieve a one trillion dollar economy by 2026, and the insurance sector is poised to play a pivotal role in realizing this objective,” Omosehin remarked during the handover ceremony from his predecessor, Mr. Sunday Thomas.