FG initiates program to extend financial protection to Nigerians 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.

Senator Ibrahim Hassan Hadejia, Deputy Chief of Staff to the President (Office of the Vice President), disclosed this during a roundtable meeting on Tuesday.

“This marks the first time insurance is being formally recognised as a critical financial service in Nigeria’s economic framework,” Hadejia noted.

He emphasized the need for financial inclusion through insurance.

“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 stated.

Dr. Jankara Usman, Deputy Commissioner of Technical at the National Insurance Commission (NAICOM), discussed the potential benefits of the initiative.

“Through inclusive insurance, we can provide tailored, affordable products that promote financial readiness and advance social well-being.” 

He highlighted data from the World Bank, noting that “only two out of five adults in sub-Saharan Africa can raise $35 within 30 days.”  

He also pointed out that Nigeria’s insurance penetration rate stands at just 3.3%, which is below global averages.

Dr. Nurudeen Zauro, Technical Advisor to the President on Economic and Financial Inclusion, mentioned that the meeting reflects President Bola Ahmed Tinubu’s commitment to the insurance sector.

He indicated that the government will establish a monitoring framework to ensure the effective implementation of the decisions made during the roundtable. This framework will focus on:

The roundtable produced several proposals aimed at expanding insurance access, including:

The initiative has received support from key institutions, including the Nigeria Insurance Association (NIA), National Health Insurance Authority (NHIA), Central Bank of Nigeria (CBN), and other regulatory bodies. Their involvement will be essential for the successful implementation of the proposed strategies.

The outcomes of the roundtable will be presented to the National Economic Council (NEC) for further consideration.

The Nigeria Labour Force Survey, published by the National Bureau of Statistics (NBS), reveals that only 26.3% of Nigerian workers had a pension plan and health insurance in 2023.

The Nigeria Labour Force Survey, published by the National Bureau of Statistics (NBS), reveals that only 26.3% of Nigerian workers had a pension plan and health insurance in 2023.

The report states that “the percentage of employees entitled to either pension or health insurance schemes in Nigeria was 26.3%. Zamfara state had the highest (65.9%) while Abia had the lowest (3.9%) among wage employed.”

This low percentage of employees with pension and health insurance plans is largely attributed to the significant number of informal sector workers in Nigeria, with the study indicating that approximately 92% of the employed population is engaged in informal employment.