The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund Committee as part of efforts to strengthen public confidence in Nigeria’s insurance sector and protect customers from losses arising from distressed insurance firms. The inauguration took place in Abuja on Thursday, with the Minister of Finance and Coordinating Minister of……
The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund Committee as part of efforts to strengthen public confidence in Nigeria’s insurance sector and protect customers from losses arising from distressed insurance firms.
The inauguration took place in Abuja on Thursday, with the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, saying the initiative forms part of broader reforms targeted at improving trust and stability within the industry.
Oyedele noted that many Nigerians remain skeptical about insurance due to fears that policyholders could lose their savings whenever insurance companies fail or refuse to settle claims.
According to him, the newly established fund will serve as a financial safety net for policyholders and ensure that Nigerians are not left stranded if an insurance firm becomes distressed.
“Today’s inauguration of the Insurance Policyholders’ Protection Fund Committee marks a significant step in the implementation of the Nigerian Insurance Industry Reform Act 2025,” Oyedele said.
He noted that the insurance industry remains critical to economic growth because it helps families and businesses recover from unexpected losses while encouraging investment and innovation.
Despite its importance, insurance penetration in Nigeria remains low, with many citizens reluctant to trust the system due to poor experiences and concerns over accountability.
The minister said the government hopes the new framework will gradually rebuild public confidence and make insurance more reliable for ordinary Nigerians.
“The establishment of the IPPF Committee demonstrates our resolve to safeguard the interests of policyholders and ensure that, in the unlikely event of insurer distress or failure, policyholders are protected and their claims obligations are met in a timely and orderly manner,” he stated.
According to Oyedele, the Insurance Policyholders’ Protection Fund will help reduce risks in the sector, strengthen trust and align Nigeria’s insurance industry with global standards.
He added that the Nigerian Insurance Industry Reform Act 2025 introduced tougher regulatory measures aimed at improving transparency, supervision and accountability across the industry.
The minister said the reforms were also expected to encourage local and foreign investment while expanding the role of insurance in infrastructure financing and financial inclusion.
Addressing members of the newly inaugurated committee, Oyedele urged them to manage the fund with integrity and professionalism.
“The credibility and effectiveness of the IPPF will depend on your commitment to excellence and your stewardship of this important mandate,” he said.
He also reaffirmed the Federal Government’s commitment to working with regulators and industry operators to deepen insurance penetration and promote technology-driven solutions capable of reaching more Nigerians.
According to him, the inauguration of the committee represents more than a regulatory exercise.
“Today’s event is not merely an inauguration, it is a symbol of progress, a commitment to accountability, and a foundation for a more resilient insurance industry,” Oyedele said.
