The National Insurance Commission has introduced new guidelines that will require all insurance companies in Nigeria to contribute part of their earnings into a special fund designed to protect policyholders when insurers fail to meet their obligations.

The new framework, issued under the Nigerian Insurance Industry Reform Act, 2025, sets up the Insurance Policyholders’ Protection Fund as a financial safety net to ensure that Nigerians who hold insurance policies can still receive their claims even if an insurer becomes insolvent or loses its licence.

According to the Commission, the Fund will be financed through a mandatory annual contribution of 0.25 per cent of the net premium income of every insurer and reinsurer operating in the country. It explained that this contribution will be calculated after deducting brokerage commissions from gross premiums, and payments must be made into designated accounts with deposit money banks not later than June 30 each year.

The guidelines state that “the Fund shall be used for the purpose of resolving distress and insolvencies of licensed insurers or reinsurers and payment of claims… which remain unpaid by reason of insolvency or cancellation of licence,” making it clear that the policy is aimed at restoring confidence in the insurance sector.

To ensure transparency and accountability, the Commission said the Fund will be managed independently by a qualified fund manager, who must be registered with the Securities and Exchange Commission and have a minimum capital base of ₦5 billion. The manager is expected to invest the funds in low-risk, government-backed instruments to guarantee safety and liquidity, while also submitting quarterly reports, annual audited accounts and stress test results to regulators.

Under the arrangement, disbursements from the Fund will be made as loans to troubled insurance firms strictly for the purpose of settling policyholders’ claims. The guidelines make it mandatory that any money released must be paid to legitimate claimants within 10 working days, while repayment by the benefiting insurer must be completed within a maximum period of 24 months or earlier once the company recovers.

The Commission added that access to the Fund will follow a strict process, including submission of financial records, claims registers, actuarial valuations and recovery plans, as well as due diligence by external auditors before approval is granted.

To strengthen oversight, a dedicated committee will supervise the Fund, comprising representatives of the Commission, the insurance industry and the appointed fund manager, who will serve as secretary. The committee is expected to meet quarterly and ensure that decisions are made in the best interest of policyholders.

The guidelines also introduce strict compliance measures. Any insurer that fails to contribute to the Fund or repay loans risks losing its operating licence, while companies are required to report any imprudent practices within five days of becoming aware of them.

In addition, whistleblowers are to be fully protected, with the Commission stating that no individual who reports wrongdoing should face “retaliation, intimidation, threat, or any form of adverse action.”

The Commission said it will publish compliance levels within the industry and may impose penalties based on the seriousness of any breach, including measures to ensure that no company benefits financially from regulatory violations.

The new policy, which took effect from July 31, 2025, marks a major shift in Nigeria’s insurance regulation by creating a structured system to safeguard policyholders and improve trust in the industry, especially at a time when concerns over delayed or unpaid claims have continued to affect public confidence.

The Deputy Secretary-General of the United Nations, Amina Mohammed, has underscored the strategic importance of Dangote Industries Limited -particularly Dangote Fertiliser Limited—in addressing Africa’s mounting food security challenges, while calling for stronger global partnerships to scale its impact.

Speaking during a visit to the company’s industrial complex in Ibeju-Lekki, Lagos, Mohammed said the United Nations would prioritise amplifying scalable solutions capable of mitigating the continent’s food crisis, describing Dangote’s integrated industrial model as a critical pathway.

“I think the UN’s job here is to amplify and to put visibility on the possibilities of mitigating a food security crisis, and this is one of them,” she said. “I hope that when we go back, we can continue to engage partners and countries that should collaborate with Dangote Industries.”

Her remarks comes at a time of heightened concern over food shortages and supply chain disruptions across Africa, driven by global economic pressures, climate-related shocks and geopolitical tensions, particularly in the Middle East.

The President/Chief Executive, Dangote Industries Limited, Aliko Dangote, said the group has ramped up exports of urea and Premium Motor Spirit (PMS) to African markets affected by supply disruptions arising from the crisis.
Noting the widening impact of the situation across the continent, Dangote said the company has intensified shipments of fertiliser to support agricultural productivity and ease supply constraints.

“The challenges are many. One is of urea, which is fertiliser that we have. I think in the last couple of days we’ve been loading to mostly African countries, which we were not doing before,” he said. “And then now it’s to do with petroleum products, which we are now sending mainly to African countries,” Dangote said.

He added that the refinery has shipped about 17 cargoes of petrol to African countries to cushion the impact of the crisis, leveraging its 650,000 barrels per day capacity to stabilise supply across multiple regions.

“What I can do is assure Nigerians … and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” Dangote said.

On feedstock supply, Dangote commended the Nigerian National Petroleum Company Limited for increasing crude deliveries to the refinery in March, noting that volumes rose to 10 cargoes—six supplied in naira and four in dollars—to support domestic fuel availability.

“Last month, they gave us six cargoes for naira and four cargoes for dollars,” he said.

Despite the improvement, the supply remains below the 19 cargoes required for optimal operations, with the refinery continuing to bridge the gap through imports from the United States and other African producers.

Dangote also expressed concern over the unwillingness by international oil companies operating in Nigeria to sell to the refinery, stating that their preference for selling crude to traders forces it to repurchase at higher costs, with broader implications for the economy.

He added that the refinery is seeking increased access to domestically priced crude under local currency arrangements as part of efforts to moderate fuel costs and enhance long-term energy and food security across the continent.

Eterna Plc yesterday announced its audited financial results for the full year ended 31 December 2025, delivering a strong performance marked by significant profit growth and improved balance sheet strength.

The Company recorded revenue of ₦302.37 billion for the year, while profit before tax (PBT) rose to ₦7.27 billion, representing a 52.9 per cent year-on-year increase from ₦4.48 billion in 2024. Profit after tax stood at ₦2.92 billion, with earnings per share (EPS) of ₦2.24, reflecting enhanced value creation for shareholders.

The company’s financial position strengthened during the year, with total assets rising to ₦92.19 billion, driven by its inventory, while shareholders’ funds increased to ₦7.77 billion, reflecting improved retained earnings and enhanced balance sheet resilience.

The performance reflects the Company’s continued focus on operational efficiency, improved cost management, and strategic positioning across its fuels, lubricants, and gas businesses.

In line with its commitment to delivering value to shareholders, the Board of Directors has proposed a dividend of ₦0.50 per share for the financial year ended 31 December 2025, subject to shareholders’ approval at the upcoming Annual General Meeting.

Commenting on the full 2025 FY results, Managing Director/Chief Executive Officer, Olumide Adeosun, stated that the company remains focused on operational efficiency and sustainable asset expansion, while strengthening its market position across its fuels, lubricants, and gas businesses.

“Eterna Plc remains committed to building on this performance through retail expansion, increased product offerings, operational improvements, and customer-focused initiatives aimed at enhancing value for our shareholders,” Adeosun said.