The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund (IPPF) Committee as part of efforts to strengthen protection for insurance customers and restore confidence in Nigeria’s insurance sector.
Speaking during the inauguration in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the initiative as a major milestone for the industry, noting that it would protect policyholders when insurance firms become distressed or fail to meet obligations.
Oyedele said the committee was constituted under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and would serve as a financial safety net for policyholders while reducing systemic risks across the sector.
“The establishment of the IPPF demonstrates government’s resolve to safeguard the interests of policyholders and ensure that claims obligations are met in a timely and orderly manner even in cases of insurer distress,” he said.
He added that ongoing reforms are aimed at making the insurance industry more transparent, competitive and attractive to investors, while also deepening insurance penetration and financial inclusion.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, said the inauguration marks a shift from policy discussions to practical consumer protection.
According to him, the fund would support the resolution of cases involving distressed or insolvent insurance and reinsurance firms, including those affected by licence withdrawals.
“The IPPF is a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations,” Omosehin said.
He noted that beyond compensation, the fund would help shield households and businesses from avoidable losses while maintaining stability in the insurance market.
Omosehin also urged members of the committee to ensure transparency, discipline and effective governance, stressing that the credibility of the initiative would depend on proper management and sustainable financing.
Industry stakeholders believe the move could become one of Nigeria’s biggest consumer-protection reforms in insurance, especially as operators continue efforts to tackle low public trust and weak insurance penetration.
