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🇳🇬 Nigeria /Economy & Trade

Senate moves to strengthen Nigeria’s financial system

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Nigerian Senate Committee on Banking, Insurance, and Financial Institutions is working to strengthen the country's financial system.
  • The committee held a stakeholder engagement in Lagos with regulators and industry experts to discuss economic stability and growth.
  • Key issues addressed include inflation, cybersecurity, and export diversification.

Nigeria's Senate Committee on Banking, Insurance, and Other Financial Institutions is intensifying efforts to bolster the nation's financial system. The committee convened a broad stakeholder engagement in Lagos, bringing together top regulators and industry professionals to devise coordinated strategies for economic stability, financial inclusion, and sustainable growth.

Participants included leaders from the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Asset Management Corporation of Nigeria, National Insurance Commission, and Nigeria Export-Import Bank. Senator Mukhail Abiru, represented by Senator Osita Izunaso, affirmed the Senate's commitment to legislative reforms and enhanced collaboration with financial regulators to reposition the sector for long-term economic prosperity.

The financial sector remained central to investment, job creation, business expansion and macroeconomic stability, stressing that the challenges confronting the economy required closer cooperation between lawmakers, regulators and industry stakeholders.

— Mukhail AbiruSenator Abiru on the importance of the financial sector and stakeholder collaboration.

Abiru highlighted the financial sector's crucial role in investment, job creation, business expansion, and macroeconomic stability. He stressed that current economic challenges, such as inflationary pressures, global uncertainties, cybersecurity threats, low insurance penetration, and the need for export diversification, demand unified policy responses.

The effectiveness of monetary policy, the strength of our financial safety nets, the soundness of our banking institutions, the vibrancy of the insurance industry and the availability of export finance are all interdependent components of a stable and well-functioning financial architecture.

— Mukhail AbiruSenator Abiru explaining the interconnectedness of financial components.

The engagement, themed “Strengthening financial system architecture for sustainable economic growth and stability in Nigeria,” underscored the interdependence of monetary policy, deposit insurance, asset recovery, insurance development, export finance, digital finance, and overall financial regulation. The Senate plans continued engagement with stakeholders to develop effective legislation and policies.

Olusegun Omosehin, Commissioner for Insurance and CEO of NAICOM, noted progress in the insurance industry, citing the Nigeria Insurance Industry Reform Act 2025 as instrumental in stabilizing and modernizing the sector. He also reported that 43 insurance companies had successfully met new recapitalization requirements.

The Nigeria Insurance Industry Reform Act 2025, sponsored by Abiru and the committee, had contributed to stabilising and repositioning the sector in line with global best practices.

— Olusegun OmosehinNAICOM Commissioner on the impact of recent legislative reforms.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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