NAICOM
20 insurance firms seek verification as industry nears July recapitalisation deadline
As the nation’s insurance industry inches closer to the July 2026 deadline for recapitalisation, 20 insurance firms are known to have raised the minimum capital as prescribed by the new Insurance Act.
It would be recalled that the Nigerian Insurance Industry Reform Act (NIIRA), which came into effect last year, gave a one-year time frame for insurance companies to raise their share capitals as stipulated under the law.
Under the new arrangement, life insurance firms are required to raise their minimum share capitals from N2 billion to N10 billion, non-life insurance firms are to grow their capitals from N3 billion to N15 billion, while reinsurance companies are required to move from N10 billion to N35 billion.
Commissioner for Insurance, Mr Olusegun Ayo Omosehin, revealed on Wednesday that a total of 20 insurance firms have written to the National Insurance Commission (NAICOM) inviting the commission to verify their recapitalisation exercise—an indication that they may have hit their recapitalisation target. There are at least 50 insurance and reinsurance companies in the Nigerian insurance industry.
Speaking at a stakeholder strategy session on the implementation of NIIRA, Mr Omosehin said that NAICOM has, consequent upon the receipt of invitations to verify their new capitals, assigned four of the big audit firms in the country to proceed with verifying the recapitalisation status of the 20 companies that have signified possible compliance with the Act.
“Note that I have not said that 20 insurance firms have met the recapitalisation requirements; all that I said is that they have written to us to come and verify them. It is after the verification that NAICOM will be able to make an announcement on this. The commission is optimistic that no policyholder in Nigeria will suffer any loss as a result of the recapitalisation exercise. The exercise is going on well,” he emphasised.
The Commissioner revealed ongoing efforts by NAICOM to precipitate a stronger insurance market, even as he applauded the efforts of companies in meeting stakeholders’ expectations, especially in the area of claims payment. Mr Omosehin noted the heavy claims payment the industry contended with in 2025.
According to him, NAICOM will soon establish a Policyholder Protection Fund—an initiative that will ensure policyholders of any insolvent insurance firm will not be denied the benefits of their policies. Assets of such companies, he said, will be deployed to meeting liabilities to policyholders ahead of directors’ entitlements.
On strategies for improving the business portfolios of companies, he said that plans are underway with the Ministry of Internal Affairs towards ensuring that foreigners entering the country obtain travel insurance policies through the nation’s various embassies abroad as part of conditions for visa issuance.
He declared NAICOM’s commitment to enforcing the project linking every insurance policy to customers’ National Identity Numbers (NIN). He gave the end of April as the commencement date for enforcement of the Know Your Customer (KYC) initiative.
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