The National Insurance Commission (NAICOM) has reaffirmed that it will not extend the July 31, 2026 deadline for the ongoing insurance industry recapitalisation exercise, insisting that all operators must comply with the timeline stipulated under the new Insurance Act.
The Commission said the recapitalisation programme is a critical component of efforts to strengthen Nigeria’s insurance industry, improve public confidence and position operators to meet the demands of a rapidly evolving financial services sector.
Speaking at the investiture of Mr. Akinjide Oluwarotimi-Orimolade as the 53rd President of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, the Commissioner for Insurance, Mr. Olusegun Omosehin, said the deadline is backed by law and should not be treated as negotiable.
According to him, there are no plans to grant any further extension beyond July 31, urging insurance companies that are yet to complete the recapitalisation process to accelerate their efforts.
Omosehin commended operators that have made significant progress toward meeting the new capital requirements but stressed that the remaining weeks before the deadline must be used effectively.
He explained that recapitalisation is not merely about increasing shareholders’ funds but about building financially stronger institutions capable of delivering quality services to policyholders.
According to the Commissioner, stronger capitalisation should translate into faster claims settlement, improved consumer protection and greater confidence in the insurance industry.
“A stronger capital base must translate into stronger service delivery, prompt claims settlement, improved consumer protection, and a market that Nigerians can trust,” Omosehin said.
He further noted that the future of Nigeria’s insurance industry would depend on sound leadership, professional competence and unwavering commitment to serving the public interest.
“The industry’s future will be determined by the quality of leadership, depth of competence, and discipline in serving the public interest,” he added.
The ongoing recapitalisation exercise follows the signing of the Nigeria Insurance Industry Reform Act by President Bola Ahmed Tinubu, a landmark legislation that repealed the Insurance Act of 2003 and introduced far-reaching reforms aimed at modernising the sector.
One of the key provisions of the new law is the transition from the traditional fixed minimum capital requirement to a dynamic risk-based capital framework.
Industry experts say the new model aligns Nigeria with global best practices by ensuring that insurers maintain capital levels that reflect the scale and complexity of the risks they underwrite.
Stakeholders have welcomed the reform, describing it as a major step toward creating a more resilient insurance industry capable of supporting economic growth and attracting greater investment.
However, analysts also acknowledge that some operators may face challenges in raising additional capital before the deadline through fresh equity injections, mergers, acquisitions or strategic partnerships.
Despite these concerns, NAICOM has maintained that the implementation timeline will remain unchanged, emphasizing that compliance is essential to building a stronger, more competitive and globally respected insurance sector.
The Commission believes the recapitalisation programme will ultimately improve financial stability, enhance consumer confidence and enable insurance companies to play a more significant role in Nigeria’s economic development.
