
In a strategic move aimed at strengthening retiree protections and boosting confidence in Nigeria’s insurance sector, the National Insurance Commission (NAICOM) has announced plans to roll out a supplementary guideline for Retiree Life Annuity (RLA) and introduce robust cybersecurity frameworks for insurers.
This was disclosed by Moruf Apampa, Vice Chairman of the Publicity Sub-Committee of the Insurers’ Committee and Managing Director of NSIA Insurance, during a media engagement held in Lagos. According to Apampa, the new regulatory framework will significantly enhance financial safeguards for pensioners and fortify the industry against digital threats.
Speaking on the upcoming annuity guideline, Apampa emphasized that NAICOM is working to ensure that no insurance firm defaults on annuity payments. “The commission is taking proactive measures to prevent failure in annuity disbursements. The soon-to-be-released guidelines are aimed at ensuring that retirees get their monthly payments on time and without hitches,” he stated.
Retiree Life Annuity (RLA) is a post-retirement financial product purchased by retirees with a lump sum from their Retirement Savings Account (RSA), offering guaranteed monthly or quarterly income for life. However, industry observers have noted challenges ranging from delayed payments to inadequate risk controls among providers. The new guidelines seek to eliminate such lapses by enforcing stricter operational compliance and capital adequacy among insurance providers.
Beyond the annuity reforms, NAICOM is also introducing updated cybersecurity policies as part of efforts to adapt to the rapidly evolving digital landscape. Apampa said the commission has observed increasing digitalisation across the insurance value chain, prompting the need for enhanced cyber protections.
“The insurance industry, like many others, is embracing digital transformation. With this comes heightened exposure to cyber risks. NAICOM is finalizing cybersecurity guidelines that will ensure insurers implement industry-standard data protection, threat detection, and breach response protocols,” Apampa noted.
He added that the commission is committed to ensuring the insurance sector’s operational resilience in the face of emerging cyber threats, especially as customer data and transaction platforms go fully online.
Industry stakeholders have lauded the commission’s proactive approach. According to Kunle Olaoye, a pension and insurance analyst, “The forthcoming guidelines are timely. With the rising number of retirees opting for annuity over programmed withdrawals, regulatory reinforcement is necessary to secure their financial future.”
He added that the move will likely boost public trust and improve uptake of life annuity policies, which currently account for about 40% of retirement income instruments in Nigeria.
Meanwhile, insurance companies have been urged to prepare for full compliance as the new rules are expected to carry enforcement penalties for defaults. NAICOM has signaled that it will monitor annuity operations closely and increase scrutiny of claims payment patterns.
Apampa also acknowledged improvements in claims settlement across the industry, commending insurers for stepping up their game. He encouraged further advancements, especially in simplifying claims processes and improving transparency.
As Nigeria’s ageing population grows and digital penetration deepens, the dual focus on annuity and cybersecurity by NAICOM is seen as a pivotal policy shift. It underscores the commission’s mandate to safeguard policyholders, strengthen sector resilience, and align with global regulatory best practices.
The annuity and cybersecurity guidelines are expected to be released officially in the third quarter of 2025.