General News
Pathway to Taking Insurance to Greater Heights
Insurance business in Nigeria is almost a century old, yet, its level of growth and acceptability among the insuring public is still unbelievably low. Why? Expert’s opinion is unanimous in condemning the practice of operators in sticking to their familiar old pattern without minding the culture and operational environment. wilson itsisor takes a look at the industry and the probability of exploring new grounds in order to take the industry to the next level.
Why does the insuring public have unexplainable apathy towards insurance practice? Reason: the operators have failed to be proactive by exploring new areas and breaking barriers.
First, in the mode of practice over the years, a lot appears to be unclear to the insuring public around whom the business itself is woven. Among these are the technical languages with which most insurance businesses are transacted. This has been further worsened by the activities of a few operators who repudiate from paying claims when the need arises.
Interestingly, however, among all existing businesses, insurance is one that has the greatest potential for growth. This is traceable to the many untapped areas which operators have not looked into. From the operational viewpoint of operators, their greatest undoing is keeping to their old traditional methods some of which the public have lost confidence in.
Industry watchers are of the opinion that the operators are not doing enough in new products development. For instance, Nigeria ’s population is over 150 million people. Yet, over the years, operators have struck to the traditional Life Insurance Policy which accounts for less than 5 percent of the population. Also, operators ought to work on government to enforce the law that any employer who employs up to five percent ought to take insurance cover.
According to an analyst, Ambrose Umosor, a dynamic sector as insurance should be able to brainstorm and work out policies that will accommodate at least 60percent of the population. “But, can the industry grow if operators fail to explore every conceivable opportunity to raise Life Assurance beyond its present low level?”
However, some keen observers have blamed poverty and ignorance on the part of the people for the slow pace of development. But to what extent can the operators contribute in alleviating this poverty and ignorance? Here lies some of the problems confronting the insurance. If identified problems are not frontally addressed, the likelihood is that the status quo will remain.
Umosor posits that insurance practitioners should do extensive enlightenment, spread over every facet of life in order to break the barrier of ignorance to the growth of the industry.
Still on exploring new grounds, analysts say that that less than 10 percent of existing properties belonging to the various tiers of government are insured. Every where you go, there are various government properties belonging to federal, states and local governments which are not covered with insurance policies. Yet, operators seem to be satisfied with the low level of such properties that are presently covered by insurance.
Analysts suggest that insurance operators should liaise with relevant government agencies to identify all such government properties up to the ward levels at the local government. They opined that when concerted efforts are made by them, the dividends of such efforts will not only enhance the scope of business but also contribute to raising industry standard.
In addition, research findings show that in Nigeria , household items are usually not insurable as it is done in the developed nations. Mr. Shola Olafimiyan explained that a sector like insurance with a greater potential for growth, should be active in evolving ways out of the doldrums.” What does it take to get all Nigerians, for instance, who own household items to insure them against theft and fire?”
Olafimiyan said: “It takes a proactive insurance sector working with relevant government agencies to formulate, amend and change policies towards the enhancement of the insurance business”.
Another area which has remained largely untapped is motor vehicle insurance. According to sources at the National Insurance Commission (NAICOM), over 70percent of vehicles on our roads are not insured. Out of these less than 30percent of vehicles that are insured, majority of them carry third class insurance instead of comprehensive policies.
Besides, a large percentage of these vehicles carry fake insurance certificates. Mr. Ambrose Umosor explained that everyday in Nigeria ; thousands of new vehicles are bought, noting that if an existing law says that all vehicles must be compulsorily insured, what stops the operators from deploying all their resources to ensure that this is fully complied with.
He blamed this slow pace of development on the winner-takes-all syndrome among operators which forbade them from working as a united front to raise the standard. For instance, analysts believe that if the operators, individually and collectively, through the Nigerian Insurance Association and other professional groups, work hand-in-hand with NAICOM, the Federal Ministry of Finance and the National Assembly, the insurance coast will be further enlarged.
Industry watchers believe that vehicle insurance alone, if properly harnessed, is enough to cater for the greater needs of operators. But because of the several leakages arising from the lukewarm stand of operators, the industry is still shrouded in myth and mystery.
Apart form public buildings and the unexplored vehicle insurance cover; the uninsured private buildings in Nigeria , especially story buildings are other areas which operators have not looked into.
Recently, the Lagos State House of Assembly proposed a bill which will see to the compulsory insurance of story buildings. This was proposed to nip the cases of collapsed buildings in the bud.
Concerned watchers opined again that a proactive and innovative industry should have tapped into this area in order to enhance its growth. Unfortunately, insurance operators have struck to their old grounds, many of which have failed to develop beyond their status even after several decades.
Notwithstanding stakeholders have been challenged to rise to their responsibility and raise the standard of the industry. This becomes critical, especially now that the consolidation wind is still blowing across the industry. The good performance of insurance stocks on the floor of the Nigerian Stock Exchange (NSE) now is an indication of the positive effects of the reforms.
Therefore, if other factors militating against enhanced standard are addressed, the insurance industry may be the most vibrant in our economy.
This Valentine’s Day, PalmPay is celebrating love in all its forms with the launch of #LoveWithPalmPay, a campaign highlighting how simple, everyday shared money moments can bring relationships closer.
Valentine’s Day is more than grand gestures; it’s built on the small, meaningful actions that shape relationships, sending timely support, saving together, or managing shared responsibilities. PalmPay encourages users to share 30–60 second real-life stories, either solo or duet style, showing how PalmPay always works and has helped them support or stay connected with someone they love.
The campaign runs from February 9th to 21st across Facebook, Instagram, X (formerly Twitter), and TikTok. Four winners will receive ₦100,000 each week for two weeks, totalling a prize pool of ₦800,000.
Entries can take many forms, including couple videos, solo stories, split-screen duets for long-distance couples, or voiceover narratives with photos or clips, making the campaign inclusive for married couples, parents, and long-term partners.
How to Participate:
- Share an authentic love story about your partner
- Clearly show PalmPay in action (transfers, savings, or other in-app activities)
- Be creative and emotionally engaging
- Post between February 9th – 21st with the hashtag #LoveWithPalmPay
- Share on any of PalmPay’s social media platforms
“Love evolves, and so do relationships,” said Olorunfemi Hanson, Head of Marketing and Communication, PalmPay. “From dating to parenthood, the small money moments we share every day play a big role in keeping us connected. With #LoveWithPalmPay, we want to celebrate those stories and show how PalmPay always works, making everyday love simpler, reliable, and meaningful.”
This Valentine’s Day, PalmPay celebrates love as it truly is real, intentional, and built on shared moments.
PalmPay is a leading digital banking platform driving financial inclusion and economic empowerment in underserved emerging markets. Through its secure, user-friendly, and inclusive suite of financial services, PalmPay empowers individuals and businesses with tools to manage and grow their money.
PalmPay offers a comprehensive range of products, including mobile payments, savings, and micro-insurance via its app and mobile money agent network.
Since launching in Nigeria in 2019 under a Mobile Money Operator license, the platform has grown to over 35 million app users and processes up to 15 million transactions daily. PalmPay has operations in Nigeria, Ghana, Tanzania, and Bangladesh. For more information, visit www.palmpay.com
Central Bank of Nigeria (CBN)and the Nigerian Communications Commission (NCC) have proposed that customers must receive refunds within 30 seconds for failed airtime and data purchases to curb persistent billing complaints in the telecommunications sector.
This was indicated in the Exposure Draft of the Joint CBN–NCC Framework for Resolution of Failed Airtime and Data Purchase Transactions, which was published on the website of the CBN on Monday.
The landmark exposure draft, dated 5 February 2026, seeks to “institutionalise clear accountability” and establish a “coordinated approach to consumer redress” across the financial and telecommunications sectors.
The most significant shift in the proposed framework is the introduction of standardised, automated timelines for resolving failed transactions.
Currently, Nigerians often face long delays when airtime purchases fail at the bank, aggregator, or Mobile Network Operator level.
To solve this, the regulators have proposed a 30-second window for automated reversals. Section 6.0 (ii) of the draft exposure, which dwelt on failed transactions, especially as it relates to unfulfilled airtime/data delivery, proposes a time to refund the purchaser of 30 seconds “if the transaction failed at the bank level… Failed transaction delivery from NCC Authorised Licensees… Failed transaction delivery from MNO to the NCC Authorised Licensee.”
The draft emphasised that stakeholders must “automate reversal processes across all stakeholders” to ensure that refunds require no human intervention from the customer.
The draft exposure also stated that “all parties involved in airtime and data transactions shall take the following actions to ease usage and facilitate consumer satisfaction: a. Stakeholders must immediately connect ONLY to relevant authorised licensees of the NCC and CBN. b. MNOs and banks must only connect to NCC Authorised Licensees/MNO digital channel partners for airtime and data vending… Notifications of failure create final settlement obligations between MNO and NCC-authorised licensees… The NCC and CBN will audit stakeholder compliance jointly or individually at quarterly or other intervals as may be determined.”
From a business and oversight perspective, the regulators are proposing a Central Monitoring Dashboard to be hosted jointly by the CBN and NCC, which will track reversals, Service Level Agreement breaches, and customer complaints in real-time.
“There shall be a Central Monitoring Dashboard hosted by CBN/NCC for tracking reversals, SLA breaches, and customer complaints. This will facilitate the establishment of a real-time national ‘Failed Transactions Dashboard’ with a uniform error code with end-to-end visibility across the value chain’, read the draft exposure.
This is designed to eliminate the “unclear ownership of liability” that often occurs when banks and telcos blame each other for failed recharges. To support this, banks and MNOs will be required to maintain and share daily reports of successful and failed cases.
The proposed framework also addresses the common problem of “lost” money when customers recharge ported phone numbers. The draft mandates that MNOs must validate a phone number against the ported number database before processing any recharge. If the system identifies a number as ported out or invalid, it must “proactively stop recharges” and send a failure code back to the bank to ensure the customer is not debited.
For erroneous recharges sent to the wrong person, the framework sets clear protocols: below N20,000, MNOs will request the recipient’s consent before a reversal, and when it is above N20,000, an affidavit of indemnity or notarised letter is required to process the recovery.
The CBN and NCC in the exposure draft signalled they will take a firm stance on compliance. Both agencies will conduct joint quarterly audits of all stakeholders, including banks, payment service providers, and MNOs, to verify compliance with the new rules. The regulators have warned they will “impose penalties for any breach” of the framework’s provisions.
Banks and other financial institutions have until 10 February 2026 to submit their inputs on the draft before it is finalised. Once implemented, the framework is expected to significantly restore “subscriber trust” in Nigeria’s digital financial ecosystem.
Federal government has unveiled a new digital platform to connect millions of women to finance, skills training, and market opportunities, in what officials call the country’s largest technology-driven women’s inclusion initiative to date.
The Happy Woman App Platform, which was unveiled at the Presidential Villa in Abuja, would serve as a single interface for women to access funding facilities, business development support, governmental initiatives, and critical services.
The digital drive comes as Nigeria grapples with expanding gender gaps in financial access, with women much less likely than males to maintain bank accounts or obtain formal credit, limiting their capacity to grow informal enterprises they primarily run.
Yet women remain central to the economy, accounting for a large share of micro and small enterprises that contribute nearly half of the country’s GDP.
According to the Social Institutions and Gender Index, only about 35 percent of Nigerian women have a bank account at a financial institution, compared with 55 percent of men, underscoring the depth of persistent financial exclusion and the urgency of targeted interventions.
The launch coincided with the expansion of the Nigeria for Women Programme, which the administration now plans to scale nationwide to reach 25 million women.
President Bola Tinubu, represented by vice president Kashim Shettima, said the scale-up is central to Nigeria’s economic growth strategy.
“A nation that relegates its women is a nation bound for implosion,” he said, adding that women must be placed “at the centre of national planning and productivity.”
The expanded programme builds on a pilot phase in six states that reached over one million women, many organised into Women Affinity Groups to access grants, savings schemes and livelihood support.
The government says the new app will streamline beneficiary registration, payments and training, reducing leakages and improving delivery.
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