The Senate Committee on Banking, Insurance and Other Financial Institutions has intensified efforts to strengthen Nigeria’s financial system through closer collaboration with regulators and industry stakeholders.
The committee held an expanded stakeholders’ engagement in Lagos at the weekend, bringing together representatives of key institutions, including the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Asset Management Corporation of Nigeria, National Insurance Commission and Nigeria Export-Import Bank.
The committee’s Chairman, Mukhail Abiru, represented at the session by Senator Osita Izunaso, said the Senate was committed to legislative reforms and stronger collaboration with financial regulators to reposition the sector for sustainable economic growth.
Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, adding that the challenges confronting the economy required coordinated action among lawmakers, regulators and industry players.
He identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as key areas requiring coordinated policy responses.
The engagement was held under the theme, “Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria.”
Abiru said the theme underscored the interconnectedness of monetary policy, deposit insurance, asset recovery, insurance development, export financing, digital finance and financial regulation.
“The effectiveness of monetary policy, the strength of our financial safety nets, the soundness of our banking institutions, the vibrancy of the insurance industry and the availability of export finance are all interdependent components of a stable and well-functioning financial architecture,” he said.
He explained that the engagement was designed to provide a platform for policymakers, regulators and financial experts to examine emerging challenges and develop practical solutions.
Abiru added that the Senate would continue to consult regulators and industry stakeholders in the formulation of legislation and policies aimed at addressing challenges within the financial sector.
Insurance Sector Reforms
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Omosehin, highlighted recent developments in the insurance industry.
Omosehin said the Nigeria Insurance Industry Reform Act 2025, sponsored by Abiru and the committee, had helped stabilise and reposition the sector in line with global best practices.
He disclosed that 43 insurance companies had successfully recapitalised under the ongoing reforms.
The NAICOM chief commended the committee for its role in the passage of the Insurance Regulatory Commission Bill and urged the House of Representatives to conclude its consideration of the legislation to pave the way for presidential assent.
He said the timely passage of the bill would “further strengthen the regulatory framework governing the insurance industry.”
Representatives of the CBN Governor and the managing directors of AMCON, NEXIM and NDIC also commended the committee for its legislative and oversight interventions, saying the support had enhanced their institutions’ ability to fulfil their mandates.
The engagement also featured presentations by financial and economic experts, including the President of Capital Market Academics of Nigeria, Prof. Uche Uwaleke; Chief Consultant at B. Adedipe Associates Limited, Prof. Biodun Adedipe; and Chief Executive Officer of CFG Advisory, Dr Tilewa Adebajo.
The experts presented policy papers examining various aspects of Nigeria’s financial system and measures needed to improve its resilience and contribution to economic development.
The stakeholders’ meeting comes amid ongoing efforts by the Federal Government and financial regulators to strengthen Nigeria’s financial architecture amid economic pressures, technological changes and evolving global financial risks.
The financial sector remains central to mobilising savings, providing credit, supporting investment and facilitating international trade. However, challenges such as financial exclusion, low insurance penetration, cybersecurity threats and macroeconomic instability continue to limit its full potential.
