The National Insurance Commission (NAICOM) has intensified efforts to expand the adoption of compulsory insurance policies across Nigeria, targeting state governments through strategic engagement with the Nigeria Governors’ Forum (NGF).
This move is a critical step in NAICOM’s broader mandate to deepen the culture of insurance across the nation and ensure compliance with compulsory insurance laws.
The commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, led the charge during a recent visit to the NGF Secretariat in Abuja.
In his meeting with the director general of the NGF, Dr. Abdulateef Shittu, Omosehin outlined NAICOM’s mission to strengthen collaboration between the federal and state levels in promoting compulsory insurance.
“One of the mandates of the National Insurance Commission is to deepen the culture of insurance by ensuring nationwide compliance with the compulsory insurance provided by our laws,” Omosehin stated.
He noted that while federal agencies have driven compliance at the national level, there is a pressing need for greater cooperation and collaboration at the state level to achieve comprehensive coverage.
The commissioner’s visit to the NGF Secretariat was aimed at establishing a coordinated approach to engaging state governments.
Omosehin stressed that the partnership with the NGF, as the policy hub for state governors, is essential to the success of this initiative.
“We are here to discuss how a coordinated approach can be adopted in working with the states, and this collaboration must begin with engaging the NGF Secretariat,” he said.
Omosehin acknowledged that past efforts to promote compulsory insurance at the state level have yielded limited results.
However, he expressed confidence that by addressing the challenges differently and centralizing the approach through the NGF, NAICOM could achieve better outcomes.
He noted that the Commission chose to start with the NGF to engage the Secretariat and share ideas on how best to move forward.
A key aspect of the Commission’s strategy involves the domestication of laws related to compulsory insurance by state governments.
Omosehin cited Lagos State as an example of successful domestication and urged other states to follow suit.
He highlighted the need to centralize the approach to ensure uniform compliance across all states, particularly concerning motor third-party insurance, which is a significant source of internally generated revenue (IGR) for states.
The Commissioner also underscored the importance of raising awareness across the states about the value of insurance in protecting assets and ensuring financial stability.
In his response, Dr. Abdulateef Shittu, Director General of the NGF, expressed optimism about the potential impact of the partnership. He praised NAICOM for taking the initiative to engage with the NGF and assured Omosehin that the Forum is committed to supporting efforts to deepen insurance penetration across the country.
Dr. Shittu also took the opportunity to explain the role of the NGF Secretariat as a policy hub and a resource centre for the 36 state governors in Nigeria.
He emphasised that the Secretariat serves as the technical and administrative arm of the Forum, providing services and policy formulation to facilitate the work of the governors.
“The NGF Secretariat is a one-stop shop for any business you want to do with the states,” Shittu added, highlighting the efficiency and accessibility of the Forum’s administrative arm.
As a result of the meeting, NAICOM and the NGF Secretariat agreed to develop a concept note outlining the next steps in their collaboration. With a delivery room assessment already conducted, both parties are eager to move forward with the initiative.
A joint committee has been established to oversee the implementation of the agreed-upon strategies, signalling a strong commitment to making compulsory insurance a standard practice across all Nigerian states.
This development marks a significant milestone in NAICOM’s ongoing efforts to enhance insurance coverage and compliance throughout Nigeria.
By securing the support and cooperation of state governments through the NGF, NAICOM is poised to make substantial progress in its mission to protect citizens and strengthen the nation’s insurance framework.
Source: The Nation
