Joy Agwunobi
The National Orientation Agency (NOA) has underscored the far-reaching benefits of Nigeria’s newly signed insurance industry reform bill, describing it as a policy framework designed to strengthen citizens’ financial security, expand protection for households, and reduce exposure to unforeseen risks.
In a recent explainer, the agency said the legislation makes it compulsory for Nigerians to insure vehicles, buildings, healthcare, pensions, and specified business operations — a move it described as critical to deepening financial inclusion and improving confidence in the country’s financial system.
According to NOA, the law provides a robust regulatory framework for the insurance industry, setting out basic principles and empowering new guidelines to strengthen sectoral discipline.
“The Act will serve as a regulatory framework for the insurance industry, outlining basic principles and empowering regulations and guidelines to strengthen Nigeria’s insurance sector and accelerate the nation’s march towards a $1 trillion economy,” the agency stated.
The agency explained that the reform is expected to protect policyholders and stakeholders through timely and proactive regulatory interventions, while also promoting discipline, ethical practices, and sound conduct across the insurance value chain.
It added that the law is designed to accelerate insurance penetration and raise public awareness in ways that foster inclusive sectoral growth. At the same time, it is expected to facilitate job creation and support employment-driven initiatives within the wider insurance ecosystem.
With insurance penetration in Nigeria still among the lowest in Africa, NOA said the bill represents a turning point for both the industry and the broader economy, as it aims to mainstream risk protection in everyday life and stimulate sector-driven development.
PenCom bars seven mortgage banks over equity loan breaches
The National Pension Commission (PenCom) has suspended seven mortgage banks from participating in the pension-backed housing loan scheme, citing violations that undermine regulatory compliance.
In a circular dated August 11, 2025, and signed by Obiora Ibeziako, head of PenCom’s Benefits and Insurance Department, the commission directed all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to stop accepting or processing equity contribution applications linked to the affected institutions with immediate effect.
“Following the cited letter, the Commission instructs that Pension Fund Administrators, including Closed Pension Fund Administrators, and Pension Fund Custodians, immediately stop accepting or processing equity contribution applications submitted by the following Primary Mortgage Banks,” the circular stated.
The sanctioned mortgage banks are Jigawa Savings & Loans Limited, FHA Mortgage Bank Limited, Delta Trust Mortgage Bank Limited, AG Mortgage Bank Limited, Infinity Trust Mortgage Bank Plc, First Trust Mortgage Bank Limited, and Mutual Alliance Mortgage Bank Limited.
Explaining the decision, PenCom spokesperson, Ibrahim Buwai, said the affected banks failed to generate mortgages for which pension-backed equity contributions had been approved. According to him, the funds were intended to support approved applicants in meeting equity contributions for residential mortgages. However, investigations revealed that some of the mortgage institutions did not deliver on this mandate, a breach that compelled regulatory action.
The suspension underscores PenCom’s determination to strengthen transparency and accountability in the pension-backed mortgage scheme, which was introduced in September 2022. The policy allows Retirement Savings Account (RSA) holders to access up to 25 percent of their RSA balance as equity contribution towards acquiring residential mortgages, a reform designed to expand access to affordable housing for contributors.
