The Federal Government is considering the introduction of a mandatory travel insurance policy to cover repatriation expenses for individuals entering Nigeria on short-stay visas.

The move is designed to ease the financial pressure on taxpayers and strengthen national risk-management systems.

According to a statement from the National Insurance Commission (NAICOM), the Minister of Interior, Dr. Olubunmi Tunji-Ojo, met with the Commissioner for Insurance and Chief Executive Officer of the Commission, Mr. Olusegun Ayo Omosehin, in Abuja to discuss the proposal.

NAICOM disclosed that “the meeting identified significant taxpayer expenses related to repatriation, estimated at billions of naira annually, and proposed a strategic solution: implementing travel insurance to cover repatriation expenses, particularly for individuals entering Nigeria on short-stay visas.”

Officials at the meeting agreed that such a policy would ease the financial load on the government and support broader economic stability.

The discussion also focused on the need for the federal government to shift some existing liabilities to insurance companies in order to build more efficient and cost-effective structures for managing national risks. Stakeholders believe that this approach will help stimulate growth and opportunities within the insurance industry.

To tackle fraud and strengthen the integrity of insurance operations, a major proposal was put forward to enhance data verification systems, with the National Identity Management Commission (NIMC) expected to play a central role.

NAICOM explained that a robust, single-source verification system would “significantly reduce fraud and enhance the overall efficiency of the insurance industry.”

As part of the next steps, a technical working group will be constituted to examine the feasibility of the comprehensive travel and repatriation insurance policy. The group will also work on developing a centralized material management (CMA) system and improving inter-agency data synchronization to support the effective rollout of the new initiatives.

During the meeting, the Minister of Interior urged insurance operators to raise the quality of service offered to Nigerians and develop products that align with modern lifestyles. Dr. Tunji-Ojo said the sector remains essential to national economic growth, noting that “you cannot grow an economy without growing your insurance sector.”

He added that his ministry is committed to promoting solutions that protect Nigerians and optimise the use of government resources.

The Commissioner for Insurance restated the Commission’s readiness to collaborate closely with the Interior Ministry to deepen insurance penetration across the country and improve mechanisms for data exchange.

NAICOM also stated that it will continue to monitor operators using a sophisticated solvency control and intervention framework to preserve financial stability and safeguard the interests of policyholders.

The Commission further noted its commitment to educating stakeholders and expanding insurance penetration while maintaining its advisory role to government on insurance-related matters.