The Federal Government is considering introducing a mandatory travel insurance policy that will require visitors entering Nigeria on short-stay visas to obtain coverage for repatriation costs.

The proposal aims to reduce the financial burden currently borne by taxpayers and strengthen the country’s national risk-management framework.

In a statement released by the National Insurance Commission (NAICOM), the Minister of Interior, Dr. Olubunmi Tunji-Ojo, met with the Commissioner for Insurance and NAICOM Chief Executive Officer, Mr. Olusegun Ayo Omosehin, in Abuja to review the plan.

NAICOM revealed that billions of naira are spent annually on repatriation-related expenses, prompting the government to explore the adoption of compulsory travel insurance as a sustainable solution. Officials agreed that such a policy would help ease government expenditure and enhance economic stability.

Risk-Shifting and Sector Strengthening

Discussions at the meeting also centred on shifting some government liabilities to insurance companies to create a more efficient and cost-effective structure for managing national risks. Stakeholders believe the move would further stimulate growth in the insurance sector.

To curb fraud and strengthen the integrity of insurance operations, the meeting proposed enhanced data verification systems, with the National Identity Management Commission (NIMC) expected to take a key role in establishing a single-source identity verification framework.

NAICOM stated that such a system would “significantly reduce fraud and enhance overall industry efficiency.”

Technical Group to Lead Policy Design

A technical working group will be set up to examine the feasibility of the proposed travel and repatriation insurance scheme. The group will also work on developing a centralized material management system and improving inter-agency data synchronization ahead of implementation.

During the meeting, Dr. Tunji-Ojo urged insurance operators to improve service standards and design products that reflect evolving consumer needs. He emphasized that no economy can grow without a strong insurance sector and reaffirmed the ministry’s commitment to promoting solutions that protect citizens and optimize government resources.

The Commissioner for Insurance expressed NAICOM’s readiness to collaborate with the Interior Ministry to deepen insurance penetration and strengthen data exchange systems nationwide.

NAICOM also reiterated its ongoing commitment to enforcing solvency controls, safeguarding policyholders, educating stakeholders, and advising government on insurance matters.