FG Inaugurates Insurance Policyholders’ Protection Fund Committee

The Federal Government has inaugurated the Insurance Policyholders’ Protection Fund Committee as part of efforts to strengthen consumer protection and boost confidence in Nigeria’s insurance industry.
The committee was inaugurated in Abuja under the provisions of Section 212 of the Nigerian Insurance Industry Reform Act 2025.
Speaking at the inauguration ceremony, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the fund as a critical safety net designed to protect policyholders in cases where insurance firms become distressed, insolvent, or lose their operating licences.
Represented by the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, the minister said the initiative would help strengthen public confidence in the insurance sector and support financial system stability.
“The IPPF will provide a financial safety net for policyholders and enhance confidence in the insurance ecosystem,” he said.
According to the minister, the fund is expected to mitigate systemic risks in the financial sector, align Nigeria’s insurance market with global best practices, and support broader economic goals such as financial inclusion and infrastructure financing.
Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin, said the committee’s mandate goes beyond ceremonial functions.
He explained that the committee would ensure maximum protection for insurance policyholders and beneficiaries, oversee the collection and management of contributions into the fund, and establish procedures for loan disbursement and recovery.
Omosehin noted that the establishment of the committee followed the implementation of the Nigerian Insurance Industry Reform Act 2025, which replaced previous regulatory provisions with a more modern risk-based framework.
He said the new law was designed to strengthen regulatory oversight, improve consumer protection, enhance corporate accountability, and create a more competitive environment for investment in the insurance sector.
The commissioner urged members of the committee to discharge their responsibilities with integrity and professionalism, stressing that the success of the initiative would depend on effective governance and sustainable management of the fund.
According to him, the fund ultimately belongs to insurance consumers and would be judged by its ability to respond fairly and promptly when policyholders are affected by insurer insolvency.