Sovereign Trust Insurance Plc has called on the Federal Government to intensify its support and patronage of the insurance sector, following the recent enactment of the Nigerian Insurance Industry Reform Act 2025.
Mr. Segun Bankole, the company’s Deputy General Manager for Corporate Communications and Investor Relations, praised President Bola Tinubu for signing the bill into law. He described the move as a significant leap toward reinforcing the financial services sector and driving Nigeria closer to achieving its one-trillion-dollar economic target.
The new legislation, signed into law on August 5, introduces critical reforms, including enhanced capital requirements aimed at strengthening the financial resilience of insurance providers.
While Bankole acknowledged the timeliness and importance of the reform, he cautioned that its effectiveness depends heavily on increased demand for insurance services and consistent government involvement. He warned that without a boost in patronage—especially from public institutions—many local insurance firms may struggle to meet the new capital thresholds.
He noted that relying on loans or undergoing forced mergers to meet regulatory requirements could place additional pressure on operators, especially if consumer engagement with insurance products remains low.
“Recapitalisation under the new Act is a step in the right direction,” Bankole said. “But if local firms are left without meaningful market support, there’s a real risk of foreign dominance due to stronger currencies and financial capacity.”
He urged the government to take an active role in promoting insurance adoption by integrating it into everyday life through policy enforcement and increased awareness campaigns. Bankole highlighted the need for continuous public sensitization and institutional engagement to embed insurance more deeply into Nigeria’s economic culture.
“The new law is commendable,” he added, “but it requires strategic implementation and long-term government commitment to ensure the sector not only survives—but thrives.”