NAICOM
Bolatito Mercy
The National Insurance Commission (NAICOM) has set a May 31, 2026, deadline for insurance companies to submit their Insurance Policyholders’ Protection Fund (IPPF) assessment returns for the 2025 financial year. This move is aimed at strengthening policyholder protection and boosting confidence in Nigeria’s insurance sector.
The IPPF serves as a statutory safety net, protecting policyholders in the event of financial distress or insolvency of licensed insurers or reinsurers. The fund will be used to resolve distress and insolvencies, and pay claims admitted by or allowed against a licensed insurer or reinsurer.
To comply, insurers and reinsurers must submit their IPPF Assessment Returns, calculated as 0.25% of their gross premium income, to NAICOM by the deadline. Failure to comply may attract regulatory sanctions, including suspension or cancellation of an operator’s license.
The guidelines, issued under the Nigerian Insurance Industry Reform Act 2025, provide a comprehensive regulatory framework for the collection, management, and administration of the IPPF. NAICOM will contribute 0.25% of the balance in the Security and Insurance Development Fund to the IPPF annually.
The IPPF framework introduces a mandatory early-warning mechanism, requiring insurance operators to report imprudent practices to NAICOM within five working days. Whistleblowers are protected from retaliation or adverse action.
NAICOM’s Director, Special Risk & Security Analysis, John Falade, emphasized the importance of strict compliance, stating that the commission is committed to maintaining a stable and protected insurance environment .
The move signals tighter regulatory oversight and a renewed push to safeguard policyholders’ interests. Industry stakeholders are expected to review the guidelines closely, as the IPPF aims to address longstanding vulnerabilities in the Nigerian market.
