Senate moves to strengthen Nigeria’s financial system
August 9, 2026 8:55 pm
File Photo: Nigerian Senate
The Senate Committee on Banking, Insurance and Other Financial Institutions has stepped up efforts to strengthen Nigeria’s financial system, bringing together major regulators and industry experts to develop coordinated measures for economic stability, financial inclusion and sustainable growth.
The committee held an expanded stakeholders’ engagement in Lagos on Saturday, with the leadership of the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Asset Management Corporation of Nigeria, National Insurance Commission and Nigeria Export-Import Bank among those represented.
The committee Chairman, Mukhail Abiru, who was 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 long-term economic growth.
Abiru said the financial sector remained central to investment, job creation, business expansion and macroeconomic stability, stressing that the challenges confronting the economy required closer cooperation between 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 some of the issues 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 reflected the interdependence 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,” Abiru said.
He explained that the expanded engagement was intended to provide a platform for discussions among policymakers, regulators and financial experts, and to generate practical solutions to emerging challenges in the sector, adding that the Senate would continue to engage regulators and industry stakeholders in developing legislation and policies capable of addressing these challenges.
The Commissioner for Insurance and Chief Executive Officer, NAICOM, Olusegun Omosehin, highlighted developments in the insurance industry, saying the Nigeria Insurance Industry Reform Act 2025, sponsored by Abiru and the committee, had contributed to stabilising and repositioning the sector in line with global best practices.
Omosehin disclosed that 43 insurance companies had successfully recapitalised under the ongoing reforms, as he 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 enable it to receive presidential assent.
The NAICOM chief 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 helped their respective institutions carry out their mandates more effectively.
The meeting also featured presentations by leading financial and economic experts, including the President, Capital Market Academics of Nigeria, Prof. Uche Uwaleke; the Chief Consultant at B. Adedipe Associates Limited, Prof. Biodun Adedipe; and the Chief Executive Officer, CFG Advisory. Dr Tilewa Adebajo.
The experts presented policy papers examining various aspects of Nigeria’s financial system and the measures required to improve its resilience and contribution to economic development.
The stakeholders’ engagement comes amid continuing efforts by the Federal Government and financial regulators to strengthen Nigeria’s financial architecture in the face of economic pressures, technological changes and evolving global financial risks.
The financial sector plays a critical role in mobilising savings, providing credit to businesses, supporting investment and facilitating international trade. However, challenges including financial exclusion, weak insurance penetration, cybersecurity risks and macroeconomic instability continue to constrain its capacity.
Dirisu Yakubu is a journalist at Punch Newspapers with over a decade of experience covering parliament, politics, and development issues. He specializes in reporting that provides context and insight into legislative and governance matters. Dirisu’s work reflects extensive newsroom experience and a commitment to accurate and impactful journalism.
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