NAICOM, fintech players join forces to increase insurance penetration in Nigeria

Nigeria’s insurance sector may soon witness a digital revolution as the National Insurance Commission (NAICOM) and the Fintech Association of Nigeria (FintechNGR) announced plans to collaborate on using technology to close critical gaps and expand adoption.

The move comes as industry stakeholders raise fresh concerns about the country’s insurance penetration, which currently sits between 1% and 3%—one of the lowest in Africa.

At a recent high-level engagement with regulators and lawmakers, the fintech body highlighted Nigeria’s poor insurance uptake as both a concern and a growth opportunity.

The association’s delegation, led by the President of Africa Fintech Network (AFN), Dr. Segun Aina, noted that technology and innovative partnerships can help reimagine how insurance products are designed, distributed, and consumed.

Dr. Stanley Jacob, President of FintechNGR, stressed the need for fintechs and insurers to work hand-in-hand to broaden coverage. According to him, “continuous engagement between regulators and fintech players is critical to deepening financial inclusion, and insurance must be part of that agenda.” 

NAICOM acknowledges the digital gap 

Responding to FintechNGR’s proposals, NAICOM Commissioner, Mr. Olusegun Ayo Omosehin, admitted that supervisory challenges have hampered the regulator’s ability to drive insurance adoption.

• He noted that the lack of supervisory technology (SupTech) tools has limited oversight and enforcement within the sector.
• Both NAICOM and FintechNGR agreed to collaborate on mapping the ecosystem, identifying digitally capable players, and deploying tech-based solutions to improve product innovation and customer access.
• Industry watchers say such collaboration could boost microinsurance, health insurance, and other retail-focused offerings, especially for low-income earners.

CBN pushes for innovation and compliance 

The discussions with NAICOM formed part of a broader advocacy visit by FintechNGR to Nigeria’s key regulators, including the Central Bank of Nigeria (CBN).

At the meeting with CBN Governor, Dr. Olayemi Cardoso, the association urged the apex bank to standardize the proposed Africa Fintech Passport initiative to encourage innovation and cross-border financial inclusion.

Dr. Cardoso, while acknowledging the rapid rise of fintechs, emphasized the importance of building a framework that works for all ecosystem players.

“All we want to hear from your organization is good news. Drive your members in the direction that is good for the country,” he said.

Adding her perspective, Director of the Payments System Supervision Department at the CBN, Dr. Rakiya Opemi Yusuf, reiterated that the bank is committed to deepening policies for financial stability, innovation, and compliance.

“CBN is committed to driving innovation and, most importantly, compliance amongst fintechs,” she said.

What you should know 

As part of efforts to boost insurance penetration in the country, President Bola Tinubu recently signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a transformative piece of legislation aimed at modernizing Nigeria’s insurance sector and accelerating the country’s journey toward a $1 trillion economy.

• The Act introduces sweeping reforms in the form of stringent capital requirements, compulsory insurance enforcement, and digitization mandates.
• The NIIRA 2025 empowers the National Insurance Commission (NAICOM) to regulate and supervise all insurance and reinsurance businesses operating within Nigeria.
• It also introduces a series of reforms designed to strengthen consumer protection, attract investment, and improve operational efficiency.
• NAICOM, fintech players join forces to increase insurance penetration in Nigeria  - Nairametrics