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The National Insurance Commission, NAICOM, has reaffirmed that it will not extend the July 31, 2025 deadline for the recapitalisation of insurance companies operating in Nigeria.
The Commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Ayo Omosehin, made this known during an interactive session with insurance journalists in Abuja, stressing that any serious risk underwriting company should be able to meet the deadline.
Omosehin, who was represented at the forum by the Deputy Commissioner for Insurance, Technical, Dr. Usman Jankara, explained that the deadline was firmly rooted in the provisions of the Nigeria Insurance Industry Reform Act, NIIRA, 2025 and cannot be altered by the Commission without an amendment by the National Assembly.
He noted that the recapitalisation exercise was aimed at attracting more funds into the insurance industry, strengthening operators’ credibility, and encouraging the emergence of financially viable companies capable of adding real value to the Nigerian economy.
According to NAICOM, raising additional capital will be facilitated largely through the Nigerian Exchange, adding that assurances have been received from the Securities and Exchange Commission, SEC, to fast-track approvals for capital raising within a significantly shorter timeframe.
The regulator explained that the recapitalisation became necessary due to the erosion of the existing minimum capital thresholds by inflation and exchange rate depreciation, noting that amounts such as N2.5 billion and N5 billion are no longer adequate to support effective risk underwriting.
Omosehin said the exercise would naturally eliminate weak and marginal operators who may be unable to meet the new requirements, forcing them to merge or exit the market, thereby strengthening financial commitment and professionalism within the industry.
On claims by some insurance companies that they have already recapitalised, NAICOM said it is yet to verify any such submissions, adding that verification processes are ongoing to determine the authenticity of the claims.
He also spoke on the proposed Insurance Policy Owners Protection Fund, noting that its establishment would boost confidence in the industry and increase insurance penetration and contributions to the nation’s Gross Domestic Product.
NAICOM added that the absence of complaints from insurers over the proposed Fund indicates industry wide support, stressing that the initiative was designed to address long standing confidence issues and provide greater protection for policy holders.
Umbwanko Baba, Edited By Grace Namiji
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