Nigeria Launches Five-Year Plan to Pull Millions of Nigerians into Insurance
By Patience Ikpeme
The Federal Government and the insurance industry have launched a five-year plan to pull millions of Nigerians into insurance, after admitting that only about 5 percent of the country’s roughly 220 million people currently have any form of cover.
The plan, called the Insurance Sector Strengthening Programme, or ISSP, was officially launched on Thursday, in Abuja, before an audience of government officials, lawmakers, regulators, insurance companies and international partners.
Insurance currently makes up just 0.5 percent of Nigeria’s Gross Domestic Product, compared to an average of 3.2 percent across Africa. Organisers of the programme say the plan is to lift that figure sharply over the next five years, with the long-term target put at 10 percent of GDP by 2031, while a formal proposal earlier submitted to the National Insurance Commission sets a nearer-term goal of tripling penetration to 1.5 percent by 2028.
Speaking at the launch, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, said the day marked a turning point for the industry, describing it as a moment when years of planning finally moved into action.
“There are moments in the life of every industry when reform must move from intention to action, and when vision must be translated into measurable impact,” he said. “Today is one of those moments for the Nigerian insurance sector.”
Figures shared at the event show just how deep the problem runs. About 78 percent of Nigerians do not properly understand what insurance is or how it works. Women make up only 32 percent of policyholders nationwide, even though they play a major role in running homes and businesses.
Young people between 18 and 35 years old, who make up the bulk of Nigeria’s population, account for less than 20 percent of insurance customers, and only about 8 percent of Micro, Small and Medium Enterprises, the small businesses that form the backbone of the economy, carry any form of insurance cover, leaving many of them exposed to losses that could shut them down overnight.
Mr. Omosehin said these numbers point to an industry that has not been serving the people it exists for, but that this can change.
“These challenges should not be viewed merely as obstacles,” he said. “Rather, they point to the need for innovative solutions, stronger industry coordination, and deeper stakeholder engagement to unlock the enormous potential of Nigeria’s insurance market.”
He explained that NAICOM’s job as regulator is to protect policyholders, keep the market stable, enforce good conduct among insurance companies, and support healthy growth. But he made clear that regulation cannot do this work alone.
“Sustainable growth cannot be achieved by regulation alone, but growth without discipline, transparency, and accountability cannot serve the public interest,” he said. “It requires collaboration, innovation, consumer confidence, professional competence, and a shared commitment to deepening insurance penetration across every segment of society.”
To close these gaps, the programme has set specific targets for the next five years. Organisers want to reach more than five million Nigerians across all 36 states and the Federal Capital Territory with insurance education and services, train 6,000 insurance professionals, connect 250,000 small businesses to insurance products, push women’s share of policyholders up to 40 percent, and raise young people’s share of the customer base to 30 percent.
The plan rests on six main areas of work: advocacy and policy support, public awareness and education, training for insurance workers, bringing more women into the industry as both customers and professionals, engaging young people through digital tools and career paths, and connecting small businesses to insurance cover built around their needs.
The Commissioner said the awareness and education part of the plan matters the most, because many Nigerians simply do not trust or understand insurance well enough to buy it.
“No insurance market can flourish where consumers do not appreciate insurance as a practical tool for financial protection and risk management,” he said.
He also spoke about training for insurance workers, saying the industry’s future depends on the people running it.
“The future competitiveness of our industry depends on the quality of its human capital,” he said.
On the decision to focus on women and young people, he said no industry can grow while leaving out large parts of society.
“No sector can achieve sustainable growth when large segments of society remain underserved or underrepresented,” he said. “Women are a significant economic force, while young people represent the future of our nation and our industry.”
Mr. Omosehin was firm that the push for growth must not come at the cost of protecting ordinary policyholders, warning insurance companies that they will be watched closely as the programme rolls out.
“Innovation will be encouraged, but not at the expense of consumer protection,” he said. “Market expansion will be supported, but not at the expense of solvency, transparency, or public trust.”
He added that operators in the industry would be expected to earn the trust of Nigerians through their conduct, not just their advertising.
“NAICOM will continue to engage, support, and guide the industry; but we will also insist that every operator earns public confidence through compliance, professionalism, and service excellence,” he said.
He linked the programme directly to the Nigeria Insurance Industry Reform Agenda, known as NIIRA 2025, a wider government plan built around deepening insurance penetration, raising professional standards, encouraging innovation, protecting consumers, and growing the industry’s contribution to the economy.
Speaking on the role of technology, the Commissioner said insurance companies in Nigeria have little choice but to modernise how they work.
“The world is changing rapidly, and digital transformation is redefining how financial services are designed, distributed, and consumed,” he said. “Customers now expect convenience, transparency, and personalized solutions.”
For him, the real measure of success will not be numbers alone. “Beyond market growth, our ultimate objective is to build trust,” he said. “Trust is the foundation of every successful insurance market. It is earned through transparency, timely claims settlement, ethical conduct, strong regulation, and consistent delivery of value.”
He described the programme as a shared task involving government, insurance companies, professional bodies, development partners, schools and the media, each expected to play a part.
“Working together, we can build an insurance sector that is inclusive, innovative, trusted, and impactful,” he said.
The programme is being led by Mrs. Bukola Ifemade, Managing Director of EMDI Capacity Development Limited, who in her remarks described the ISSP as a 36 to 60 month plan built on advocacy, awareness, capacity building and inclusive growth, and said it was designed to respond to an urgent need to deepen insurance coverage while expanding access for women, young people and small businesses.
“The ISSP responds to the urgent need to deepen insurance penetration, expand access for women, youth and MSMEs, strengthen professional capacity, encourage innovation and improve the contribution of insurance to Nigeria’s economic resilience,” she said.
She noted that the programme would bring government, regulators, insurance practitioners, businesses, development partners and communities together around one shared plan, and called on everyone in the room to get involved.
Mrs. Ifemade said the ultimate goal was to turn a sector that has long struggled to grow into one that works for ordinary Nigerians. “Together, we can transform Nigeria’s insurance sector into a stronger engine for resilience, inclusion and prosperity,” she said.
