NAICOM Sets Timelines as Recapitalisation Season beckons
The National Insurance Commission (NAICOM) has urged insurance operators to gear up for compliance as it enters a new phase of capital verification exercise ahead of the its recapitalisation drive.
Deputy commissioner for Insurance of NAICOM Dr. Usman Jankara in his goodwill message delivered at the Continental Re CEO Roundtable in Lagos said the recapitalisation journey is no longer theoretical but now firmly in the execution stage, with timelines that remain non-negotiable.
Jankara, who represented the Commissioner for Insurance at the occasion addressed industry leaders on the sub-theme “Recapitalisation: Timelines, Target and Strategic Implication,” and lauded Continental Re for convening a talk shop rooted in one of the most critical reforms shaping the future of the Nigerian insurance market.
He said Nigeria’s insurance industry continues to grapple with low penetration, weak capitalisation, and limited underwriting capacity, making recapitalisation not only necessary but urgent.
According to him, the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the accompanying Minimum Capital Requirement guidelines have set the stage for the sector’s most ambitious transformation yet.
Life insurers must meet ₦10 billion capital, non-life companies ₦15 billion, while reinsurers are expected to attain ₦35 billion.
NAICOM has already set up an in-house committee to drive the process and has issued guidelines to ensure clarity, transparency, and orderly compliance.
He reminded operators that the deadlines remain firm, stressing that by September 30, 2025, all companies must submit their recapitalisation plans, followed by monthly progress reports and a full capital verification exercise running from November 2025 to June 2026.
The final compliance deadline is July 30, 2026, after which licences will be issued only to companies that meet the required capital benchmarks. To safeguard credibility, NAICOM will rely on the Big Four auditing firms to verify capital, ensuring that only genuinely compliant insurers move forward.
Beyond meeting the capital thresholds, Jankara emphasised that recapitalisation is the beginning of a broader transition toward resilience.
Jankara explained that stronger capital will boost underwriting capacity, enhance solvency, build public trust, and position Nigerian insurers to participate in larger domestic and continental risks, especially under the African Continental Free Trade Area (AfCFTA).
He warned, however, that capital alone will not guarantee industry relevance. Operators must rethink risk, strengthen technical capacity, adopt robust data models suited to Nigeria’s realities, integrate ESG principles, and invest in digital transformation to remain competitive.
