NAICOM Targets 10% Insurance Penetration, 25m Nigerians By 2031

…Launches 5-year ISSP to tackle low awareness, trust deficit

The National Insurance Commission (NAICOM), has unveiled a five-year industry-wide blueprint to significantly deepen insurance coverage in Nigeria, targeting an increase in penetration from 0.5 per cent of Gross Domestic Product to 10 per cent by 2031.
The target is contained in the Insurance Sector Strengthening Programme (ISSP), a 36 to 60-month initiative launched in partnership with stakeholders in the insurance industry.
Speaking at the launch on Thursday, Commissioner for Insurance and chief executive of NAICOM, Olusegun Omosehin, said the industry had reached a point where reform could no longer remain at the level of policy intentions but must translate into measurable improvements in coverage and consumer confidence.
“Despite the nation’s large economy and population, insurance penetration remained significantly below its potential, with many Nigerians either uninsured or underinsured,” Omosehin said.
He identified limited understanding of insurance products, trust deficit, capacity constraints and fragmented distribution channels as some of the factors holding back the industry’s growth.
According to the commission, the programme seeks to tackle low public awareness, weak consumer confidence, distribution gaps, inadequate capacity, and limited access to insurance among women, youths, and Micro, Small and Medium Enterprises, MSMEs.
ISSP sets out to reach 25 million Nigerians within five years. This includes five million from the general population, two million women entrepreneurs, and 1.5 million youths aged between 18 and 35. The plan also targets 250,000 MSMEs and the training of 6,000 insurance professionals.
An interim milestone has been set to grow penetration to 1.5 per cent of GDP by 2028.
Omosehin said the new programme would provide a structured response through six pillars covering advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and MSME and value-chain development.
He stressed that NAICOM’s regulatory mandate would remain anchored on policyholder protection and market stability, warning that industry expansion must not come at the expense of solvency, transparency and ethical conduct.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Abiru, described the programme as pivotal to Nigeria’s broader economic transformation.
Represented by his Senior Legislative Aide, Mr Victor Inedu, said a resilient insurance industry is indispensable for safeguarding lives, protecting commercial assets, and stimulating private investment.
He noted that legislation alone would not suffice without enforcement, sound governance, and digital innovation.
Group managing director of Sahara Power Group and keynote speaker, Kola Adesina, said insurers must become more responsive to actual customer needs, noting that products have not always been tailored to policyholders’ realities.
Adesina said the future of the industry rests on developing products that provide practical value rather than merely meeting regulatory or contractual requirements.