Federal Govt. Launches ‘Aso Accord’ to Expand Insurance for Nigerians

Federal Govt. Launches 'Aso Accord' to Expand Insurance for Nigerians

The Nigerian Federal Government recently introduced a new insurance plan designed to bring financial protection to millions of uninsured Nigerians. This initiative, called the “Aso Accord,” aims to reshape Nigeria’s insurance system by expanding access to affordable coverage. The announcement took place at a roundtable meeting held at the State House. At the event, the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia, highlighted the role of insurance access in promoting financial inclusion and supporting Nigeria’s economic growth.

Dr. Jankara Usman, the Deputy Commissioner Technical at the National Insurance Commission, shared key data underscoring Nigeria’s low insurance rates. According to Dr. Usman, Nigeria’s current insurance penetration rate is only 3.3%, a level significantly lower than global averages. Citing World Bank statistics, he pointed out that only two out of five adults in Sub-Saharan Africa could raise $35 within a month, showing how vulnerable many people are without insurance coverage. This new initiative seeks to reduce this financial vulnerability by offering insurance options that are both affordable and specifically designed to meet the needs of Nigerians.

During the roundtable meeting, several innovative ideas were proposed to make insurance accessible. Suggestions included allowing people to purchase insurance using phone airtime, creating micro-insurance products for low-income Nigerians, and integrating digital technologies like blockchain for streamlined insurance services. The government has also set up a monitoring framework to ensure these plans succeed. This framework will involve specialized committees, risk management programs, public-private partnerships, and collaboration across various agencies.

Support for this initiative is strong, with backing from major organizations like the Nigeria Insurance Association, National Health Insurance Authority, and the Central Bank of Nigeria. Dr. Nurudeen Zauro, Technical Advisor to the President, explained that this move demonstrates the Tinubu administration’s dedication to strengthening Nigeria’s insurance sector. The meeting’s findings will be shared with the National Economic Council for further action.

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