The federal government has inaugurated an Insurance Policyholders’ Protection Fund (IPPF) committee to strengthen consumer protection and stabilise Nigeria’s insurance industry. 

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said during the inauguration on Friday in Abuja that the IPPF committee would safeguard the interests of policyholders.

He described the establishment of the committee as a major milestone in the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

According to him, the establishment of the IPPF Committee demonstrates the country’s resolve to safeguard policyholders’ interests.

He also said it would ensure that, in the unlikely event of an insurer’s distress or failure, policyholders were protected and their claims obligations were met in a timely and orderly manner.

He noted that the insurance sector remained a critical pillar for economic growth, providing risk management, financial protection, and capital mobilisation needed to support investment and infrastructure development.

The minister explained that the IPPF would serve as a financial safety net for policyholders, enhance public confidence, and align Nigeria with international best practices in insurance regulation.

Mr Oyedele urged members of the committee to ensure that the fund was sustainably financed, transparently managed, and responsive to emerging industry risks.

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Omosehin, described the inauguration as a significant step toward deepening consumer protection in Nigeria.

He explained that the IPPF was established pursuant to Section 212 of NIIRA 2025 to provide institutional protection for policyholders.

“The IPPF is a statutory safety net for policyholders when an insurer becomes insolvent or is unable to meet its obligations.

“Its value goes beyond compensation. It protects households and businesses from avoidable loss, reinforces trust in insurance as a reliable promise, and helps preserve stability across the market,” he said.

The commissioner outlined the committee’s core responsibilities, including ensuring the timely collection of contributions to the IPPF and establishing sound investment and management practices.

He said that the committee’s role was a serious governance responsibility requiring professionalism, discipline, and transparency.

Mr Omosehin further assured stakeholders that NAICOM would provide the regulatory oversight and institutional support necessary for the committee’s success.

He emphasised that the IPPF must operate independently and in the best interest of policyholders. 

(NAN)