The National Insurance Commission (NAICOM) has disclosed that the July 2026 deadline set for the recapitalisation of the insurance sector remains unchanged.
NAICOM’s Deputy Commissioner, Technical, Dr. Usman Jankara, made this known on Tuesday while speaking at a Seminar organized for Insurance journalists in Abuja.
Dr Jankara mentioned that the recapitalisation exercise was intended to reposition the sector for sustainable growth and contribute to the attainment of the ambitious one trillion-dollar economy of President Bola Tinubu by year 2030.
TheFact Daily reports that following the enactment of the NIIRA 2025 in July this year (2025), the NAICOM announced a 12-month recapitalisation exercise for insurance and reinsurance companies operating in Nigeria under a Risk-Based Capital (RBC) model.
As designed by the Commission, any firm that is unable to raise fresh capital is at risk of forced merger, acquisition or liquidation.
The NIIRA 2025 legislation introduced a higher Minimum Capital Requirements (MCR) of N10 billion (US$6.7 million) for life, N15 billion(US$9.98 million) for non-life, N25 billion (US$16.6 million) for composite and N35 billion (US$23.3 million) for reinsurance companies in Nigeria with a deadline of July 2026.
Speaking at the Seminar, the Deputy Commissioner revealed that while some operators are claiming to have met the minimum capital requirement set for them, the Commission is yet to fully assess them to truly ascertain their claims.
He explained that the ongoing recapitalisation of the insurance industry was more than just a regulatory milestone. Adding that it was a bold transformation that would redefine the Nigerian insurance industry for global relevance.
“By raising capital thresholds, and introducing a risk-based capital framework, we are laying a foundation for a stronger, more resilient insurance capable of underwriting complex risks and driving national development,” he added.
He said “to ensure absolute transparency and the credibility of that process, we are leveraging and collaborating with the Big4 auditing firm for independent verification of capital. This approach is to ensure and guarantee confidence and trust in the process.”
Highlighting other achievements so far recorded by the Commission under the current leadership of Mr Ayo Omosehin, the Deputy Commissioner said the NAICOM has pursued reforms that balanced prudential oversight with innovation and market growth.
He also mentioned that the Commission now has a stronger supervision for sustainable growth and this was done through adoption of Risk-based supervision and capital requirement, that is focused on high-risk institutions.
“We have also improved market conduct practices, and faster redress mechanisms within the insurance industry. This we have done through enhanced transparency, quicker pay settlement and zero tolerance for non-settlement of complaints or claims.
“We have also instituted inclusive insurance growth within the Nigerian insurance industry through expansion of micro insurance, takaful, insurtech and products that are tailored towards MSMEs and other stakeholders in Nigeria.
“We are also collaborating with other stakeholders to ensure systemic resilience to enforcement, particularly of the Third-party motor insurance policy and is being done in collaboration with the Nigeria Police Force (NPF).
“We have also made strides in ensuring insurance visibility and perception through strategic reforms and robust stakeholder engagement that has elevated the visibility and credibility of the Nigerian insurance industry,” he added.
The Seminar was organized to strengthen engagement and trust between the NAICOM and Media Professionals who play a critical role in shaping public perception of the nation’s insurance sector.
The objectives of the Seminar were to also foster collaboration and deepen understanding of the insurance sector, to promote accurate, balance and responsible reporting on insurance matters, and to highlight the positive strides of the NAICOM in recent times, especially the bold actions taken by the Commission to ensure that the insurance policy holders and potential holders are adequately protected.
