Since President Bola Tinubu assumed office in May 2023, the Federal Government of Nigeria (FG) has sanctioned at least ₦10.897 billion in direct insurance premiums, a significant outlay designed to protect workers, public infrastructure and key government liabilities, a review of Federal Executive Council (FEC) decisions shows.
The figure, gathered from a series of council approvals and presidential directives examined by Sunday PUNCH, covers major insurance contracts spanning group life assurance for federal employees and cover for critical assets such as airports.
The largest single insurance commitment occurred on January 17, 2024, when the FEC approved ₦9.8bn for the renewal of the Group Life Assurance Scheme, which provides coverage for all federal employees.
Addressing journalists on the decision, the Minister of Information and National Orientation, Mohammed Idris, said the approval stemmed from a memo by then Head of the Civil Service, Dr. Folasade Yemi-Esan.
“There are about 12 insurance companies involved. It’s a regular annual coverage that insurance companies give workers. So, in the event of death or severe injury, they can resort to [the policy], and their families would not have to suffer,” Idris said.
The policy was broken into packages allocated across 12 Nigerian insurance firms, which will manage life assurance for civil servants exposed to occupational risks.
The second major approval came on March 3, 2025, with the council sanctioning ₦1.097bn for insurance covering “critical assets and personnel” of the Federal Airports Authority of Nigeria (FAAN).
Festus Keyamo, Minister of Aviation and Aerospace Development, said the cover was crucial in meeting International Civil Aviation Organisation (ICAO) certification standards, noting:
“We cannot continue to run our airports without insurance cover,” Keyamo told reporters at the State House.
The aviation risk will be underwritten by five Nigerian insurers, with Leadway Assurance named as the lead underwriter.
While the ₦10.9bn figure captures only direct premium approvals to date, the Tinubu administration says it has also instituted broad health insurance reforms through the National Health Insurance Authority (NHIA).
On September 3, 2025, President Tinubu directed the Secretary to the Government of the Federation (SGF), George Akume, to issue a service-wide circular mandating all ministries, departments and agencies (MDAs) to enrol employees under the NHIA plan, in line with the NHIA Act of 2022.
“All MDAs must enrol their employees in the NHIA plan. Entities participating in procurement must show valid NHIA certificates,” said a statement by presidential spokesman Bayo Onanuga.
In addition to these approvals, President Tinubu has reshaped leadership within Nigeria’s insurance sector, in April 2024, he appointed Halima Kyari as Chairperson of the National Insurance Commission (NAICOM) Board, with Olusegun Omosehin as Commissioner for Insurance and other technocrats as deputies.
On March 30, 2025, former Senator Ibrahim Oloriegbe was named Chairman of the NHIA.
Tinubu has also pledged to expand insurance access to millions of previously uninsured Nigerians by exploring micro-insurance products, mobile airtime payments for premiums, and blockchain technology to improve distribution — although the cost implications of these initiatives remain undisclosed.
Despite government effort, insurance penetration in Nigeria remains low, estimated at about 3.3 per cent, well below both African averages and global benchmarks, reflecting years of weak enforcement of compulsory insurance laws, fake certificates in circulation and limited public understanding of insurance benefits.
Experts argue that this low uptake has constrained the sector’s ability to mobilise long-term funds for economic growth, pushing the financial burden of deaths, accidents and disasters onto families and government rather than insurers.
However, Mrs. Yetunde Ilori, former Director-General of the Nigerian Insurers Association, asserted that the industry now has the capacity to shoulder greater risks:
“Yes, the insurance industry has the ability to carry any risk,” Ilori said, noting that poor claims settlement in the past led to the expulsion of erring firms whose licences were later revoked.
She added that digital verification tools now significantly reduce the issuance of fake insurance certificates—especially for motor, marine and group life policies.
According to the Nigerian Insurers Association’s data on full-year 2024 performance, insurers paid out around ₦622bn in claims, with non-life insurers accounting for about ₦437bn and life insurers about ₦185bn.
