NAICOM Links Insurance Underwriting to Bond Participation

The National Insurance Commission (NAICOM) has introduced a new requirement for insurance firms in Nigeria, linking their ability to underwrite government business to their participation in government bond business. This decision was made during the 20th Insurance Committee meeting, driven by the need to tackle the significant issue of abandoned government projects across the country.

In 2021, nearly 12,000 federal and state government projects were reported abandoned, necessitating an estimated N7.78 trillion for their completion. NAICOM's chairperson, Mr.

Ebelechukwu Nwachukwu, emphasized that insurance companies must provide proof of their involvement in government bond business to be eligible for securing public sector contracts. This policy is part of a broader effort to encourage insurance firms to support government-backed infrastructure development projects and ensure accountability in the use of public funds.

The initiative aims to deepen the market capacity of the bond segment and enhance the contribution of insurance to national economic development.