NAICOM reaffirms support for takaful insurance growth

Barbara Bako, Abuja

The National Insurance Commission (NAICOM) has restated its commitment to the development of Takaful insurance in Nigeria, as it hosted members of the Takaful Advisory Council (TAC).…

According to a statement from NAICOM, TAC paid a courtesy visit to the Commission on Thursday in Abuja, to engage on strategies to deepen the growth and penetration of Takaful insurance in the country.

Welcoming the Council, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said the engagement was aimed at identifying opportunities to expand and strengthen the Takaful insurance sub-sector.

Read also:NAICOM, FinTech group partner on digital Insurance

He noted that Nigeria’s population of over 200 million people offers significant market potential for Takaful insurance, stressing that its appeal cuts across religious lines.

According to him, the major challenge remains low participation and awareness, adding that sustained engagement and education are critical to unlocking the sector’s growth.

He also commended the Council for its role in supporting the development of Takaful insurance in Nigeria.

Mr. Omosehin highlighted NAICOM’s mandate to ensure industry stability, protect policyholders and promote sustainable growth, noting that ongoing reforms are designed to strengthen operators and safeguard consumers.

He recalled that President Bola Ahmed Tinubu signed the Nigerian Insurance Reform Act (NIIRA) 2025 into law on July 31, formally recognizing Takaful insurance within Nigeria’s insurance framework, describing it as a major milestone for the industry.

Earlier, the Chairman of the Takaful Advisory Council, Professor Abdulrazzaq Abdulmajeed Alaro-MNI, congratulated NAICOM’s management on the enactment of the NIIRA 2025, describing the law as unprecedented.

He said the Council had formally written to the Commission to express its appreciation following the passage of the Act.

Professor Alaro identified low awareness as a major challenge facing the Takaful insurance sector and urged NAICOM to sustain efforts at public sensitization.

He also called for retreats, workshops and capacity-building programmes for stakeholders across the insurance industry to strengthen understanding and adoption of Takaful insurance.

Concluding the meeting, Mr. Omosehin said future growth in the insurance industry would be driven by inclusion-focused segments such as microinsurance, Takaful insurance and web aggregators.

He added that the engagement between NAICOM and the Takaful Advisory Council would be institutionalized as an annual meeting to further unlock the sector’s potential.