The Executive Director (Technical) of Continental Reinsurance Plc, Chukwuemeka Akwiwu, has called on insurance companies to strengthen governance practices to ensure prudent deployment of the fresh capital being raised under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Akwiwu made the call during the annual retreat of the Risk, Audit, and Compliance Committee of the Nigerian Insurers Association, held in Abeokuta, Ogun State.
The NIIRA, recently signed into law, introduces new minimum capital thresholds and a shift to a risk-based capital (RBC) framework. Under the new regime, insurers must calculate capital based on specific risks—spanning insurance, market, credit, and operational exposures—rather than the previous uniform approach. Minimum capital requirements have been raised to N25 billion for non-life insurance, N15 billion for life insurance, and N35 billion for reinsurance, up from N10 billion, N8 billion, and N20 billion respectively.
Speaking on the theme “Insurance Industry Recapitalisation: Strengthening Governance Activities for Maximum Benefits”, Akwiwu stressed that while higher capital will strengthen insurers’ balance sheets, only good governance will ensure the funds are effectively utilised.
“With recapitalisation, we now have the capacity to underwrite more and take on larger risks. But governance and controls must guide this process to ensure risks are well managed, exposure limits are respected, and protections are in place,” he said.
He added that capital, though necessary, is not permanent unless well managed.
“Capital is fleeting; it comes and goes. But it stays where strong governance structures are in place. Governance is the multiplier of capital—it doesn’t just preserve it, it enhances its impact.”
Akwiwu urged boards and leadership teams to embed risk management and strategic oversight into daily operations, stressing that compliance must be proactive, not an afterthought. He also advised companies to strengthen board composition by conducting skills gap analyses and appointing directors based on merit and expertise rather than personal connections.
“Gone are the days of sitting on boards because your friend owns the company. Directors must bring value, accountability, and real expertise,” he noted.
Despite the challenges of compliance, Akwiwu expressed optimism about the sector’s outlook, noting that stronger capital combined with robust governance would boost public trust, deepen insurance penetration, and position the industry as a key contributor to Nigeria’s projected $1 trillion economy.
