Senate Moves to Strengthen Nigeria’s Financial System Through Coordinated Reforms
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 convened an expanded stakeholders’ engagement in Lagos on Saturday, bringing together representatives of key financial institutions, including the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM).
The engagement, held under the theme, “Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria,” focused on measures to enhance financial stability, inclusion and sustainable economic growth.
Chairman of the committee, Senator Mukhail Abiru, who was represented by Senator Osita Izunaso, said the Senate remained committed to legislative reforms and stronger collaboration with financial regulators to reposition the sector for long-term economic development.
Abiru said the financial sector was critical to investment, job creation, business expansion and macroeconomic stability, noting that the challenges facing the economy required coordinated action by lawmakers, regulators and industry stakeholders.
He identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as key issues requiring coordinated policy responses.
He said the stability of the financial system depended on the effective interaction of monetary policy, financial safety nets, banking institutions, the insurance industry, asset recovery and export financing.
“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.
According to him, the engagement was designed to facilitate dialogue among policymakers, regulators and financial experts and generate practical responses to emerging challenges in the financial sector.
He assured stakeholders that the Senate would sustain consultations with regulatory agencies and industry players in developing legislation and policies capable of addressing the sector’s evolving challenges.
Speaking at the event, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, highlighted developments in the insurance industry and credited recent reforms with helping to reposition the sector.
Omosehin said the Nigeria Insurance Industry Reform Act 2025, sponsored by Abiru and the committee, had contributed to stabilising the industry and aligning it with global best practices.
He disclosed that 43 insurance companies had successfully recapitalised under the ongoing reforms.
The NAICOM chief also 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 to pave the way for presidential assent.
He said the timely passage of the legislation 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 discharge their mandates.
The engagement 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 architecture and measures to strengthen its resilience and contribution to economic development.
The stakeholders’ meeting comes amid continuing efforts to strengthen Nigeria’s financial system in the face of economic pressures, technological changes and emerging global financial risks.
A resilient financial sector is critical to mobilising savings, expanding access to credit, supporting investment and facilitating international trade, while persistent challenges such as financial exclusion, low insurance penetration, cybersecurity risks and macroeconomic instability continue to test the sector’s capacity.
