NAICOM Expresses Commitment to Unlocking Takaful Insurance Potential in Nigeria

The National Insurance Commission (NAICOM) is actively working to unlock the potential of Takaful, an Islamic insurance model, as a strategic tool for broadening insurance penetration and fostering financial inclusion across Nigeria. Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, stated the commission's commitment during a meeting with experts from the Islamic Financial Services Board (IFSB) following their Diagnostic Assessment Mission on Nigeria's Takaful sector.

Omosehin encouraged the IFSB delegation to offer frank, practical, and data-driven recommendations to support ongoing regulatory reforms and market development initiatives. The IFSB team, led by Dr. Hamim Syahrum Ahmad Mokhtar, presented preliminary outcomes after a five-day engagement with various stakeholders, including regulators, Takaful operators, industry associations, and development partners.

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Takaful was an alternative insurance model, rather than a subset of conventional insurance, and has the capacity to serve a broad spectrum of consumers while operating within established Shariah governance principles.

NAICOM emphasizes that Takaful is an alternative insurance model, distinct from conventional insurance, capable of serving a wide range of consumers while adhering to Shariah governance principles. The commission highlighted the importance of robust risk-based capital and supervisory frameworks, enhanced data transparency, and prudent surplus management to ensure participant protection and sustainable sector growth.

The IFSB's preliminary findings identified key measures to strengthen the legal, regulatory, and supervisory framework for Takaful in Nigeria. NAICOM considers its collaboration with IFSB a significant milestone, expecting it to contribute to a more resilient Takaful ecosystem, greater financial stability, increased consumer confidence, stronger policyholder protection, and responsible innovation within the Nigerian insurance industry. A comprehensive report is anticipated following further review and stakeholder feedback.

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The partnership was expected to contribute to greater financial stability, increased consumer confidence, stronger policyholder protection, and responsible innovation within the Nigerian insurance industry.