Federal Government Launches Initiative To Expand Insurance Access For Millions Of Uninsured Nigerians

The federal government has launched an initiative to help millions of Nigerians without insurance by bringing together top financial and insurance regulators in the country.

During a roundtable meeting Tuesday, the initiative received broad support from key institutions such as the Nigeria Insurance Association, National Health Insurance Authority, Central Bank of Nigeria and other regulatory bodies.

Deputy Chief of Staff to the President (Office of the Vice-President) Senator Ibrahim Hadejia said that the results of the meeting would be presented to the National Economic Council.

"This marks the first time insurance is being formally recognized as a critical financial service in Nigeria's economic framework," he said, as per the statement shared on X. "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."

Deputy Commissioner for Technical Affairs at the National Insurance Commission Jankara Usman also spoke during the meeting and explained the potential of this initiative.

He highlighted that inclusive insurance could offer affordable and customized products to help people become financially prepared and improve their well-being.

Usman referred to World Bank data, which showed the financial vulnerability in the region, noting that only two out of five adults in sub-Saharan Africa can raise $35 within 30 days. He also pointed out that insurance coverage in Nigeria was still very low, at just 3.3%, which was much lower than global standards.

Technical Advisor to the President on Economic and Financial Inclusion Nurudeen Zauro revealed that the government has set up a system to monitor the implementation of decisions, including creating specialized committees for financial control, developing risk management programs for small farmers, encouraging public-private partnerships, improving cooperation between agencies and making it easier to create new insurance products.

During the meeting, several new ideas were presented, including allowing insurance purchases through mobile phone airtime, creating micro-insurance products for low-income people, using blockchain technology for delivering insurance and developing digital platforms specifically for agricultural insurance.

Last month, the Nigeria Labor Congress called this denial cynical and a clear example of the IMF and World Bank's ongoing practice of imposing harsh economic policies on developing countries.