NAICOM Reiterates Non-Negotiable July 31 Deadline for Insurer Recapitalisation
The National Insurance Commission (NAICOM) has issued a stern warning to insurance companies that have yet to comply with the revised minimum capital requirements, emphasizing that the July 31 recapitalisation deadline is mandatory and not merely symbolic. This directive underscores NAICOM’s commitment to a robust and consumer-centric insurance sector.
Speaking at the investiture of Mr. Akinjide Oluwarotimi-Orimolade as the 53rd President of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, NAICOM Chief Executive Officer, Mr. Olusegun Omosehin, urged operators to act with utmost urgency to meet the regulatory stipulations. He described the recapitalisation exercise as a cornerstone of NAICOM’s ongoing reforms, designed to foster a stronger, more resilient, and customer-focused insurance industry.
The enhanced minimum capital requirements are strategically aimed at bolstering insurers’ claims-paying capacity, fortifying their balance sheets, increasing domestic risk retention, and preparing the industry for the forthcoming implementation of a risk-based capital regime. With approximately two weeks remaining until the deadline, Omosehin acknowledged the significant progress made by many operators in capital raising, investor engagement, and governance enhancements, noting that these entities are undergoing the Commission’s verification process. However, he reiterated that the deadline is a regulatory imperative demanding immediate attention.
NAICOM assures all stakeholders of a transparent, fair, and firm verification process, with a focus on ensuring that every operator demonstrates financial soundness, regulatory compliance, and operational readiness. The anticipated outcome of this strengthened capitalisation is the prompt settlement of claims, enhanced policyholder protection, improved service delivery, and a significant boost in public confidence in the Nigerian insurance market. The Nigerian Insurance Industry Reform Act (NIIRA 2025) provides a strengthened legal framework to support this vision for a more resilient, better-governed, and responsive market.
Omosehin further highlighted NAICOM’s reform agenda, which prioritises market conduct, policyholder protection, corporate governance, insurance penetration, financial inclusion, and responsible innovation. He stressed that professionalism is the bedrock of a trusted insurance market, asserting that industry growth hinges not only on adequate capital and effective regulation but also on ethics, competence, innovation, and public trust. A truly trusted market, he noted, requires competent professionals, ethical institutions, credible advice, and fair treatment of policyholders.
Commending the outgoing CIIN President, Mrs. Yetunde Ilori, for her leadership, Omosehin also congratulated the new President, Mr. Oluwarotimi-Orimolade, on his election. He urged the CIIN to focus on deepening professionalism and ethical standards, developing a sustainable talent pipeline through mentorship and stronger engagement with tertiary institutions, and promoting innovation in underwriting, claims management, cybersecurity, and technology-driven insurance services. The institute is also tasked with supporting regulatory compliance by translating NAICOM’s expectations into professional competence and fostering boardroom accountability and market discipline. NAICOM reaffirmed its commitment to partnering with the CIIN, emphasizing the need for collaboration among regulators, operators, professionals, academia, and development partners to build a globally competitive insurance industry.
Concurrently, Hon. Ahmadu Jaha, Chairman of the House of Representatives Committee on Insurance and Actuarial Matters, reaffirmed the National Assembly’s dedication to strengthening Nigeria’s insurance sector through legislative measures aimed at improving regulation, consumer protection, and insurance penetration. The House of Representatives will continue to support initiatives that drive innovation, attract investment, and enhance public confidence. Jaha encouraged the new CIIN president to prioritise expanding insurance awareness, embracing digital transformation, strengthening professional education, empowering young practitioners, and researching emerging risks, underscoring that the industry’s future depends on visionary leadership that bridges tradition with innovation while upholding integrity.
