‘Micro insurance, takaful will boost financial inclusion in Nigeria’

Following the release weekend of ‘takaful’ insurance guidelines and the ongoing efforts to develop similar one for micro insurance by the National Insurance Commission (NAICOM), Yerima Ngama, minister of state for finance, says these will boost financial inclusion in Nigeria.

Ngama, who disclosed this while presenting his keynote address at a two-day micro insurance and takaful insurance stakeholders’ engagement workshop and the official launch of the takaful insurance guidelines in Lagos, said the step taken by NAICOM will further increase insurance penetration and also enhance the sector’s contribute to the nation’s GDP.

According to him, there was no framework that addresses the peculiarities and needs of takaful and micro insurance providers and consumers in the country before now, pointing out that with the pioneering initiative of NAICOM the doors of exciting opportunities for economic expansion and national growth has been opened in Nigeria.

“Therefore, the rolling out of the takaful and micro insurance guidelines by NAICOM is apt”, he said.

He noted that the Federal Government is committed to the development of financial inclusion in Nigeria as demonstrated in the launching of the Nigeria Financial Inclusion Strategy by the Central Bank of Nigeria (CBN) and the market development strategy for insurance industry under the Market Development and Restructuring Initiatives (MDRI).

On the way forward, he urged the commission to ensure that only operators who are professionals and are ready to increase insurance penetration through innovative products that will be acceptable in the grassroots are given licence. This is important to boost confidence and trust for the sector, the minister noted.

He urged operators in the industry to take full advantage of the introduction of micro insurance and takaful initiative by NAICOM towards the expansion of a new business frontier for the development of the nation’s economy.