The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee in a major move aimed at strengthening public confidence in Nigeria’s insurance industry and protecting policyholders from the risks of insurer insolvency.
- +FG inaugurates insurance protection fund to safeguard policyholders
- +…appoints Odukale chair of committee
The initiative, established under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is expected to serve as a financial safety net for policyholders by ensuring that legitimate claims are honoured even when insurance companies become distressed or unable to meet their obligations.
…appoints Odukale chair of committee
The initiative, established under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is expected to serve as a financial safety net for policyholders by ensuring that legitimate claims are honoured even when insurance companies become distressed or unable to meet their obligations.
Speaking at the inauguration ceremony in Abuja, Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, described the launch of the fund as a critical milestone in the Federal Government’s broader effort to build a more stable, transparent, and globally competitive insurance sector.
According to Oyedele, the establishment of the IPPF underscores the government’s commitment to consumer protection, financial system stability, and sustainable economic growth.
“The insurance sector remains a critical pillar of any modern economy,” he said, noting that insurance supports risk management, financial protection, capital mobilisation, and business confidence.
He added that Nigeria’s insurance industry still holds enormous untapped potential and can play a stronger role in infrastructure financing, financial inclusion, and economic development if supported by stronger regulations and improved public trust.
Oyedele described NIIRA 2025 as a turning point for the industry, saying the new legislation introduces a modern risk-based regulatory framework aligned with international best practices.
Under the Act, regulatory oversight, transparency, accountability, innovation, and market discipline are expected to improve significantly, while policyholder protection is now placed at the centre of insurance operations.
“The operationalisation of the IPPF marks a foundation for a more resilient insurance industry capable of protecting citizens and supporting sustainable economic growth,” Oyedele said.
“With the implementation of NIIRA 2025 and the operationalisation of the IPPF, we are building a system that protects citizens, strengthens confidence, and supports sustainable economic growth.”
Also speaking at the event, Olusegun Omosehin, commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), said the inauguration of the committee represents a shift from “policy intent to institutional protection” for insurance consumers.
Omosehin explained that the IPPF, created pursuant to Section 212 of NIIRA 2025, is designed to protect policyholders and beneficiaries in cases where insurers or reinsurers become insolvent or lose their operating licences.
“The IPPF is a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations,” he said.
“Its value goes beyond compensation. It protects households and businesses from avoidable loss, reinforces trust in insurance as a reliable promise, and helps preserve stability across the market.”
He said the committee would oversee timely collection of contributions to the fund, establish sound management and investment practices, and ensure transparency, accountability, and effective governance in the administration of the scheme.
Omosehin noted that the committee, chaired by Oye Hassan-Odukale, carries a significant responsibility to ensure the fund remains sustainably financed, professionally managed, and capable of delivering fair and timely protection to policyholders.
“Your inauguration today is not ceremonial; it is the start of a serious governance responsibility,” he said.
He stressed that the success of the IPPF would ultimately be measured by the discipline of its governance, the fairness of its decisions, and the confidence it inspires across the insurance market.
The Commissioner also assured stakeholders that NAICOM would continue to provide regulatory oversight and technical support to ensure the success of the initiative.
According to him, the launch of the IPPF sends a strong signal that consumer protection remains central to the future of insurance in Nigeria and will help deepen market participation, strengthen financial inclusion, and enhance economic stability.
L-R: Babajide Fajemirokun, member, IPPF Committee; Ekerete Ola Gam-Ikon, dep. commissioner for Insurance, Finance & Acct.); Oluwatoyin Medinah Bello, dep. director Inspectorate, NAICOM; Raymond Omachi, perm secretary, FMF rep. the Hon. Minister of Finance and Coordinating Minister of the Economy; Oye Hassan Odukale, chairman IPPF Committee; Olusegun Ayo Omosehin (CFI); Yetunde Ilori, member, IPPF Committee; Okiemute Sagua, representative of Meristem Wealth Management Ltd, Fund Managers; and Usman Jankara, member, IPPF Committee, at the inauguration ceremony in Abuja.
