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The National Insurance Commission (NAICOM) has joined forces with the Malaysian government to foster knowledge sharing and capacity building aimed at driving the growth of Takaful insurance in Nigeria.
Mr. Olusegun Omosehin, Commissioner for Insurance (CFI), disclosed this during a visit from Malaysia’s High Commissioner to Nigeria, Aiyub Omar, in Abuja. Omosehin emphasized that leveraging Malaysia’s experience and best practices in Takaful insurance could play a pivotal role in accelerating Nigeria’s economic growth and development.
He noted that adopting insights from Malaysia—a country that has achieved remarkable growth in Takaful insurance over the past three decades—could help Nigeria progress toward its ambitious goal of becoming a one trillion-dollar economy.
Benchmarking for Growth
Omosehin highlighted the importance of studying successful models in countries with characteristics similar to Nigeria’s, such as Malaysia’s. This approach, he explained, would enable NAICOM to identify and implement proven strategies to foster a more conducive environment for the growth of Takaful and the broader insurance sector.
“By exploring international models and benchmarking against industry leaders, the commission aims to create a supportive ecosystem for insurance growth in Nigeria, ultimately benefiting policyholders and stakeholders alike,” Omosehin stated.
The CFI also expressed optimism about the newly passed insurance bill awaiting concurrence from the House of Representatives. He said the legislation is poised to significantly enhance capital in the insurance industry, foster new investment opportunities, and strengthen the regulatory framework to boost the sector’s overall growth and contribution to Nigeria’s economy.
Malaysia’s Commitment to Collaboration
Speaking on the partnership, High Commissioner Omar underscored the potential for bilateral agreements to drive innovation and growth in Nigeria’s insurance industry, particularly in the Takaful segment. He pledged to establish connections between Malaysian Takaful companies and Nigerian stakeholders to encourage investment and collaboration.
Omar also proposed a capacity-building initiative for NAICOM staff, involving training programs led by Malaysian experts. These initiatives aim to enhance the regulatory capabilities of NAICOM personnel and add value to Nigeria’s insurance sector.
“This partnership can draw on Malaysia’s extensive experience in Takaful insurance, a key contributor to its Islamic finance sector,” Omar added.
Takaful Insurance: A Growing Market
Takaful insurance, rooted in Sharia principles, operates as a mutual guarantee system where participants contribute to a fund that covers health, life, and general insurance needs. Claims are paid from the pooled contributions, reflecting a model of shared responsibility.
The collaboration between NAICOM and Malaysia holds the potential to catalyze growth in Nigeria’s insurance industry while promoting financial inclusion and economic resilience.
This strategic alliance aims to position Nigeria as a leading market for Takaful insurance in Africa, leveraging international expertise to meet the diverse needs of its population.
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