Insurance companies are awaiting the release of about N300 billion held in escrow accounts following the conclusion of the industry’s recapitalisation exercise, as the Central Bank of Nigeria (CBN) undertakes verification procedures before returning the funds.
The Nigerian Insurers Association (NIA) Chairman, Ebelechukwu Nwachukwu, disclosed this in Lagos, saying the National Insurance Commission (NAICOM) had formally instructed the CBN to release the money.
Nwachukwu assured insurers that the funds were expected to be returned within October, following the completion of the apex bank’s verification process.
“NAICOM has done its part by issuing instructions to the CBN. The funds will be returned to the exact accounts from which they were sent once the CBN completes its verification,” she said.
The update follows an earlier statement by the Commissioner for Insurance, Olusegun Ayo Omosehin, who had told journalists at a press briefing in Lagos that insurers were expected to receive the funds by the end of September.
Nwachukwu urged insurance operators that had successfully completed the recapitalisation exercise to use their strengthened capital bases to expand domestic underwriting capacity, increase risk retention during reinsurance renewals and develop coverage for emerging threats, including cyber and climate-related risks.
She said the industry’s next priority was to ensure that the additional capital translated into stronger operational capacity and improved risk management.
Nwachukwu also highlighted the regulator’s move towards implementing a Risk-Based Capital (RBC) framework as part of the post-recapitalisation reforms.
She disclosed that NAICOM had appointed global professional services firm Ernst & Young (EY) as a consultant to guide the industry through a transparent and structured transition to the new capital regime.
According to her, Omosehin announced the appointment during an insurers’ committee meeting, alongside other regulatory directives intended to shape the industry’s post-recapitalisation environment.
