Several Nigerian insurance companies are still waiting for the release of funds deposited in escrow accounts with the Central Bank of Nigeria following additional checks on the sources of capital raised during the industry’s recapitalisation exercise.
The delay comes weeks after the September 30, 2026 deadline announced by the National Insurance Commission (NAICOM) for the release of the funds, with reports indicating that while some insurers have received their money, others are yet to regain access to their capital.
Investigations revealed that the release process has not been completed uniformly across the affected insurance companies.
Inquiries made to three insurance firms showed that only one had received its recapitalisation funds after the deadline, while two others confirmed that their funds remained outstanding as of the time of the inquiry.
A source familiar with the process said NAICOM had completed its administrative responsibilities and forwarded the necessary communication to the CBN to facilitate the release of the funds.
However, the apex bank is reportedly conducting additional verification exercises before returning the money to the companies concerned.
According to the source, the commission had informed industry operators about the situation during a recent Insurers Committee meeting.
“NAICOM indeed has sent the memo to CBN to release the funds, but the information we have is that the CBN is doing its own checks and has said it will return the funds to the exact same account from where the funds were received,” the source said.
The source attributed the additional scrutiny to complaints and petitions that reportedly emerged during the capital-raising exercise.
“They too are doing a bit of due diligence because of all the noise that happened with the funds and all the accusations and petitions,” the source added.
The verification process is understood to be aimed at establishing the legitimacy and origin of the funds before they are returned to the insurance companies that deposited them in the designated escrow accounts.
The development has left some operators waiting beyond the announced deadline to regain access to their capital, although the precise number of affected companies and the total value of the outstanding funds could not be independently established.
The recapitalisation exercise is a significant development for Nigeria’s insurance industry, as operators work to meet the applicable capital requirements and strengthen their financial capacity.
The latest delay highlights the importance of regulatory oversight in the capital-raising process, particularly where questions have been raised about the sources of funds used by participating companies.
As the CBN continues its verification exercise, affected insurers are awaiting the release of their funds, while the timeline for completing the process remains unclear.
