Nigeria’s insurance regulator, the National Insurance Commission (NAICOM) has issued a new guidelines aimed at protecting policyholders and their investment in the event of insurance or reinsurance companies going under or liquidated.
NAICOM in issuance of the guidelines for the Collection, Management, and Administration of the Insurance Policyholders’ Protection Fund (IPPF), says the Commission is invoking its powers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other existing regulations.
The new rules are designed to provide regulatory clarity and improve compliance by establishing a comprehensive structure for how the fund is collected, managed, and administered, the Commission said in a circular to insurance and reinsurance companies on Tuesday. .
John Falade, deputy director of Special Risk & Security Analysis, at NAICOM on behalf of the Commissioner for Insurance said the guidelines are intended to reinforce confidence in the insurance sector by protecting policyholders from financial losses arising from the failure of insurers.
“The Guidelines ensure regulatory clarity, guidance and ease of compliance, as they provide a comprehensive regulatory framework for the collection, management, and administration of the Fund,” Falade said.
He explained that the IPPF serves as a statutory safety net, designed to shield policyholders in the event of distress or insolvency of a licensed insurer or reinsurer. The framework also outlines procedures for reimbursing loans obtained by troubled insurance firms.
As part of the implementation timeline, NAICOM directed that all IPPF Assessment Returns for the 2025 financial year must be submitted on or before May 31, 2026. Subsequent filings, the Commission noted, will follow the provisions outlined in Section 4.3 of the guideline.
The regulator further mandated all insurers, reinsurers, and related institutions to comply strictly with the new rules, signalling a tougher enforcement stance as it seeks to enhance stability and trust in Nigeria’s insurance market.
The introduction of the IPPF guidelines marks a significant step in Nigeria’s broader insurance reform agenda, aimed at deepening consumer protection and aligning the sector with global best practices.