The National Insurance Commission (NAICOM) has expressed confidence that Nigerian insurers are well-prepared to meet the recapitalisation requirements set under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos on Friday.
According to him, the reform, signed into law earlier this year by President Bola Tinubu, is designed to boost the financial strength of insurance companies and enhance their ability to manage large-scale and emerging risks, including those driven by climate change.
“One of the major objectives of NIIRA 2025 is to create bigger and better-capitalised institutions that can stand the test of time,” Omosehin said.
“A deadline has been set for companies to recapitalise, and we are confident that most of them are well prepared to meet this requirement.”
Deadline Set for July 2026
The recapitalisation exercise provides a 12-month window, with the final deadline set for July 2026, giving operators time to adjust to the new capital thresholds.
Omosehin revealed that NAICOM had already received recapitalisation plans from many firms across the sector and expressed satisfaction with the level of compliance and enthusiasm among operators.
“We have received recapitalisation plans from several institutions, and we are quite impressed with their responses,” he said.
“There is also growing interest from foreign investors eager to participate in Nigeria’s insurance sector.”
Stronger, More Sustainable Industry
The NAICOM chief noted that the positive response from both local and international investors shows renewed confidence in the Nigerian insurance market. He added that the recapitalisation drive will position the industry for sustained growth and improved risk management capacity.
“These are clear signs that the Nigerian insurance sector is preparing for greater times ahead and is ready to take on emerging challenges, including those caused by climate change,” he said.
Omosehin explained that adequate capitalisation would not only strengthen insurers domestically but also enable regional collaboration among African firms to pool resources and manage high-impact risks.
“When institutions are adequately capitalised, they can align with others across the continent to share and mitigate risks, especially those related to climate and environmental challenges,” he added.
Ensuring Consumer Protection
Omosehin also assured that NAICOM continues to monitor insurance companies closely to ensure prompt claims settlement, sound financial practices, and the protection of policyholders’ interests.
“Claims are being paid as and when due, and we are pleased with the level of compliance,” he noted.
“Our role as regulators is to ensure that insurers remain reliable and that policyholders’ interests are always protected.”
He urged the media to continue spotlighting progress under NIIRA 2025, describing the Act as a turning point for Nigeria’s insurance sector.
“The recapitalisation exercise is not just about compliance,” Omosehin stressed. “It’s about building stronger, more resilient institutions that can support national development and withstand future economic shocks.”
