NAICOM, IFSB move to strengthen Nigeria’s Takaful market

The National Insurance Commission (NAICOM) and the Islamic Financial Services Board (IFSB) have moved to strengthen Nigeria’s Takaful insurance market as part of efforts to deepen insurance penetration, expand financial inclusion and support sustainable economic growth.

The development followed the completion of a five-day Diagnostic Assessment Mission by a team of IFSB experts led by DDrHamim Syahrum Ahmad Mokhtar, which engaged regulators, Takaful operators, industry associations and development partners.

Briefing the Commission on the preliminary findings of the assessment in Lagos on Friday, the delegation highlighted measures for strengthening the legal, regulatory and supervisory framework governing Takaful operations in Nigeria.

The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Ayo Omosehin, said the Commission was committed to unlocking the potential of Takaful as a strategic instrument for expanding insurance coverage and financial inclusion.

Omosehin urged the IFSB team to provide frank, practical and data-driven recommendations that would assist NAICOM’s ongoing regulatory reforms and market-development initiatives.

He stressed that Takaful should be viewed as an alternative insurance model rather than merely a subset of conventional insurance, noting that it could serve a broad spectrum of consumers while operating under established Shariah governance principles.

The Commissioner identified stronger risk-based capital and supervisory frameworks, improved data transparency and prudent surplus-management practices as critical to protecting participants and ensuring the long-term sustainability of the sector.

NAICOM said the collaboration with the IFSB represented a significant milestone in building a more robust and resilient Takaful ecosystem, with expected benefits including greater financial stability, stronger consumer confidence, enhanced policyholder protection and responsible innovation.

The Commission said a comprehensive report on the Diagnostic Assessment Mission would be released after the review process and incorporation of feedback from stakeholders.