By Adedapo Adesanya
The federal government is planning an initiative to provide financial protection for millions of Nigerians currently without insurance coverage.
The initiative, which marks the first major implementation phase of the recently signed Aso Accord, brings together the nation’s top financial and insurance regulators in a collaboration to transform Nigeria’s insurance landscape.
Speaking at a roundtable meeting on Tuesday, Deputy Chief of Staff to the President (Office of the Vice President), Mr Ibrahim Hassan Hadejia, said outcomes of the roundtable will be presented to the National Economic Council (NEC).
He explained that financial inclusion through insurance was an economic imperative that would have exposed many to financial coverage.
“This marks the first time insurance is being formally recognised as a critical financial service in Nigeria’s economic framework. We cannot build a resilient economy while leaving millions of our citizens financially exposed.
“Financial inclusion, particularly through insurance access, serves as the crucial driver that will propel Nigeria toward sustainable economic growth,” he added.
On his part, the Deputy Commissioner Technical at the National Insurance Commission, Mr Jankara Usman, outlined the transformative potential of the initiative for Nigeria.
Mr Usman quoted World Bank data that paints a stark picture of financial vulnerability in the region, revealing that only two out of five adults in sub-Saharan Africa can raise $35 within 30 days.
“Through inclusive insurance, we can provide tailored, affordable products that promote financial readiness and advance social well-being. In Nigeria, insurance penetration remains at a concerning 3.3 per cent, significantly below global standards,” he said.
On his part, the Technical Advisor to President Tinubu on Economic and Financial Inclusion, Mr Nurudeen Zauro, said the meeting demonstrates President Bola Tinubu’s administration’s commitment to the insurance sector.
“The government has established a monitoring framework to ensure effective implementation of the decisions made during the roundtable, with a specific focus on forming specialised committees for financial control, developing risk management programmes for smallholder farmers, fostering public-private partnerships, strengthening inter-agency collaboration and simplifying processes for innovative insurance products.”
Proposals produced by the roundtable aimed at expanding insurance access in the country, include enabling insurance purchases through mobile phone airtime, development of specialised micro-insurance products for low-income earners, integration of blockchain technology for insurance delivery and creation of digital platforms specifically for agricultural insurance coverage.
