Insurance penetration in Nigeria currently stands at between 1% and 3%, among the lowest in Africa. At a meeting with regulators, FintechNGR leaders argued that innovation can transform product design, distribution, and uptake.

NAICOM Commissioner Olusegun Omosehin admitted that supervisory technology gaps have hampered oversight but pledged to work with fintech players to map the ecosystem and deploy digital solutions.

The push aligns with the newly signed Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduces stricter capital requirements, compulsory insurance enforcement, and digitization mandates to modernize the sector.

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The federal government is set to introduce regulations to guide e-commerce operations and implement cyber insurance for users in Nigeria. This plan is part of the draft National Digital Economy and E-Governance Bill currently before the National Assembly, as seen by TechDigest.

Section 40 of the Bill states, “The National Insurance Commission (NAICOM) in consultation with the regulatory agency shall develop and issue regulations including provisions on cyber insurance to improve security in electronic commerce.”

The “regulatory agency” referred to in the Bill is the National Information Technology Development Agency (NITDA). Sponsored by the Ministry of Communications, Innovation, and Digital Economy, the Bill is currently undergoing public engagement, according to the Ministry.

The Bill also outlines specific guidelines for e-commerce platforms. Section 39 mandates that e-commerce platforms provide accurate, clear, and accessible information about their operations, including legal names, addresses, and contact details.

It also requires clear descriptions of goods and services, as well as concise and comprehensive terms and conditions for transactions.

The proposed regulations, if passed into law, will impose stringent requirements on popular e-commerce platforms like Jumia and Konga, as well as smaller players in the industry.

During a recent media engagement in Abuja, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, emphasized the Bill’s potential to provide a legal framework and accelerate the digital economy agenda. “This bill will accelerate the progress in our digital economy because there is no clear legislation in that space,” said Tijani.

“We believe that the bill will support the growth and transformation of Nigeria’s economy through the application and the use of this technology in all facets of life in Nigeria. It will create the enabling environment for fair competition, and promote innovation, growth, and competitiveness for the Nigerian economy.”

The Bill, once passed, will be implemented across all six geopolitical zones of the country. NITDA Director-General Malam Kashifu Inuwa added that the Bill would enhance the use of the digital economy across both government and private sectors in Nigeria.

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TECHDIGEST – The National Information Technology Development Agency (NITDA) is exploring partnership and collaboration with the National Insurance Commission (NAICOM) on how to institutionalise Cyber Security Insurance in the country.

The Director-General of NITDA, Kashifu Inuwa Abdullahi, CCIE who led the Agency’s management team to the Commission on a courtesy visit reiterated the fact that the insurance cover is long overdue, especially as it is virtually impossible for any business to operate without connecting to the internet.

According to Inuwa, almost every adult in Nigeria move around with “a super computer in his/her hand or pockets”, which invariably exposes one to cybercrimes and criminals.

While quoting some reports that the global cyber crime as of 2021 was almost $6TR and projected to grow by 15% year-on-year, the DG said that as of today the figures have increased to about $8TR and will reach $10.5 TR by 2025.

“Cyber crime, if you can quantify it as a nation, will be the third largest economy, and it is bigger than all crimes combined together, in terms of cost”.

“In view of this, we need to institutionalise Cyber Insurance because Nigeria loses about N200B to cyber crime anually, imagine that just 0.0% of the Nation’s Gross Domestic Product (GDP) is worth more than N200B”, Inuwa noted.

Inuwa said “looking at this and the rate services are being digitised, coupled with the push for government digital services as well as COVID-19, the pace we are digitising has been accelerated; the future is therefore arriving faster than expected”.

The DG who emphasised the importance of securing the Insurance, averred that whereas, the commission has the primary mandate of insurance, the Agency also has certain mandates relating to cyber insurance, including development of Information Technology in Nigeria which Cyber Security is an integral part.

READ ALSO: NITDA Showcased Nigeria’s Innovative IT Policy at  2023 London Blockchain Conference 

The NITDA Boss expressed the hope that once the insurance is gotten, the country will be well positioned to mitigate the recurring losses and the ecosystem as well as the quality of systems in Nigeria will be strengthened and upgraded respectively.

“Achieving this feat will also translate to strengthening developers of systems to up their game, by taking it through series of tests before taking their products to the market”.

“Many countries have institutionalised cyber insurance, Africa inclusive; South Africa, Kenya and Egypt have done so.

Looking at our status in Africa as the largest economy and having the most vibrant digital ecosystem as well as the fastest growing digital economy, I think it is the right time for us also to institutionalise Cyber Insurance in Nigeria”, the DG maintained.

The Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission (NAICOM), Olorundare Sunday Thomas who gave a nod to the proposal brought forward by the NITDA DG, noted that he has always been talking to relevant stakeholders to look at the positive side of risks associated with technology.

“Looking at the volume of data that are driven daily, cost associated with data, magnitude and impact of the economy of nations, if there should be any economy that should be more concerned about cybercrime, it should be Nigeria”.

“The more we look forward to using technology to resolve many problems, we must also seize the opportunity to increase our workforce”, Thomas added.

The CFI assured the NITDA team of the Commission’s readiness to partner with the Agency towards institutionalising cyber insurance.

Both teams were unanimous in hitting the ground running as they agreed to create a committee of six members, three from each organisation to ascertain the modus operandi and fashion out the terms of reference.

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