By Bassey Udo
The ongoing recapitalization exercise is not just a regulatory milestone, but an attempt to redefine the Nigerian insurance industry for global relevance, the Commissioner for Insurance, National Insurance Commission (NAICOM), Olusegun Omosehin, has said.
Omosehin, who spoke at the one-day seminar for Insurance Journalists in Abuja, said the Commission was not contemplating any extension of the deadline for operators to meet the minimum capital base in the insurance industry.
Omosehin, who was represented at the meeting by NAICOM’s Deputy Commissioner for Insurance (Technical), Dr Usman Jankara, said the timetable for the recapitalization cannot be altered, as it was already fixed in the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
“The deadline contained in the Nigerian Insurance Industry Reform Act 2025 remains 30th July 2026. Any attempt to change the deadline would require a fresh legislative process and presidential assent.
“We believe the deadline as clearly highlighted by NIIRA is doable. It is reasonable, and it is something serious players within the insurance sector will be able to meet within that timeframe,” Omosehin clarified.
He said by the end of the deadline provided by NIIRA (30th July 2026), NAICOM would tell Nigerians the new insurance companies that have met the requirements of being stronger, more well-managed, and have the financial muscles to meet their obligations to Nigerians.
Speaking further on the significance of the recapitalization exercise, Omosehin said: “By raising capital thresholds and introducing a Risk-Based Capital framework, we are laying the foundation for stronger, more resilient insurers capable of underwriting complex risks and driving national development.”
“This is not just recapitalization, but an opportunity for rebirth and re-imagining of an industry that should inspire confidence, attract investment, and power President Bola Ahmed Tinubu’s economic aspirations of a $1trillion economy for Nigerians,” he added.
To ensure absolute transparency and credibility, the Commission will leverage the collective competence and integrity of the Big Four audit firms for independent verification of capital.
This strategic move guarantees confidence, fairness, and trust in the process, reinforcing the industry’s commitment to global best practices.
He described the NIIRA 2025 as a landmark legislation that provides a modern regulatory framework that strengthens supervision, promotes innovation, and enhances consumer protection.
Omosehin, who spoke about the key reforms in the insurance sector, said these included risk-based capital requirements for the operators, which aligned with insurers’ risk profiles.
Other reforms include better consumer protection through stronger market conducts rules, clear timelines for claims settlement, and stiffer penalties for regulatory breaches; innovation with safeguards by creating statutory backing for innovation initiatives. Introduction of the Policyholders’ Protection Fund to safeguard consumers in cases of insolvency and other funds to ensure safety of Nigerians.
Apart from NIIRA 2025, which he decribed as not just a law, but a blueprint for a stronger, more inclusive insurance industry, Omosehin said looking ahead NAlCOM’s vision was to safeguard policyholders and improve confidence in the industry.
This, he said, would drive effective claims management, intensify consumer protection measures to improve public trust and increase the Commission’s visibility and digital presence.
Also, he said the Commission would strengthen its supervisory capabilities and organisational effectiveness by strengthening oversight of insurers and intermediaries, enhance collaboration and data management and analytical capabilities as well as deepen skills and capacity to run as a competent regulator.
Besides, he said the Commission would strive to mprove safety and soundness of the Nigerian insurance industry through enhanced enforcement of compulsory insurance, facilitate development and adoption of new insurance distribution channels and broaden the reach and depth of insurance coverage across Nigeria.
In addition, he said the Commission would foster innovation and sustainability of the Nigerian insurance industry through enhanced enforcement mechanisms to drive full compliance with regulations, elevate industry standards through effective rulemaking, solidify solvency control system, and establish confidential reporting system for whistle-blowers, etc.
He solicited the support and partnership of the media in building trust and promoting insurance literacy, by telling stories of resilience, protection, and progress.
