NAICOM Pledges Support for Nigerian Factoring Working Group
By Patience Ikpeme
The National Insurance Commission (NAICOM) has expressed its full support for the planned transformation of the Nigerian Factoring Working Group into an Association.
Factoring, a financial tool commonly used in international trade, involves a business selling its invoices to a third party, known as a factor, at a discount. The factor then assumes responsibility for collecting the receivables from the customer.
The Nigerian Factoring Working Group was established to create a conducive legal and regulatory environment for factoring in Nigeria.
A delegation from the Working Group, led by Mr. Hope Yogo, visited the NAICOM headquarters in Abuja to seek collaboration and partnership with the Commission and insurance companies. The delegation comprised members from NEXIM Bank, CBN, GIZ, and AfreximBank.
Mr. Olusegun Ayo Omosehin, the CFI/CEO of NAICOM, pledged the Commission’s commitment to supporting the development of factoring in Nigeria. He pledged the Commission’s full cooperation and assistance to the Working Group’s efforts.
The Working Group’s leader, Mr. Hope Yogo, disclosed that the Group was considering transforming into an Association to engage all stakeholders in the value chain and leverage the critical role of insurance in factoring.
On the same day, Mr. Olusegun Ayo Omosehin paid a courtesy visit to the MD/CE of the Nigeria Social Insurance Trust Fund (NSITF), Mr. Oluwaseun Faleye, at the NSITF headquarters in Abuja.
The purpose of the visit was to explore areas of collaboration between NAICOM and NSITF to deepen insurance penetration, harness the benefits of both conventional and social insurance, share data and analytics, build capacity through training, create awareness and advocacy, and drive compliance with insurance requirements.
Both agencies agreed to establish a joint committee to drive collaboration, harness the contribution of insurance to national output, and boost the growth potential of the insurance sector in Nigeria.
