Insurance Recapitalisation: NAICOM Appoints Four Audit Firms For Compliance Verification

The National Insurance Commission (NAICOM) has reinforced its commitment to strengthening Nigeria’s insurance sector by appointing four leading audit firms to verify the recapitalisation compliance of insurance companies.

The move is part of a broader effort to ensure transparency and financial resilience within the industry.

The announcement was made in a goodwill message delivered at the Continental Re CEOs Roundtable, where the Commissioner for Insurance, Mr. Olusegun Ayo Omesehin, was represented by Dr. Usman Jankara. Industry leaders convened under the theme, “Recapitalisation & Beyond: Rethinking Risk, Capacity & Collaboration for a Resilient Insurance Sector in Nigeria.”

Speaking at the event, the Commissioner commended Continental Re for convening a platform that aligns with Nigeria’s ongoing efforts to reposition the sector for growth.

He emphasised that the insurance industry is at a defining moment, having made progress through regulatory reforms, but still facing challenges such as low penetration levels, currently below one percent of GDP.

Omesehin highlighted that recapitalisation is not merely a regulatory requirement but a strategic necessity to build long-term stability and resilience in the sector.

Citing the World Bank’s guidance on financial resilience, he noted that capital alone is insufficient, stressing the importance of building a sector capable of withstanding economic shocks while remaining competitive.

Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and NAICOM’s guidelines, new minimum capital requirements have been set at N10bn for life insurers, N15bn for non-life insurers, and N35 billion for reinsurance companies.

To drive the recapitalisation exercise, the regulator has established an in-house committee and issued comprehensive guidelines, detailing timelines and reporting requirements.

Companies are required to submit recapitalisation plans by September 30, 2025, provide monthly progress reports, and undergo capital verification from November 2025 to June 2026.

The final compliance deadline is set for July 30, 2026, after which licences will only be issued to fully compliant firms.

To safeguard the integrity of the process, NAICOM has engaged four of the world’s leading audit firms to conduct independent verification of insurers’ capital.

Their involvement, Omesehin said, will ensure that only companies with verifiable financial strength are certified as compliant.

He added that the recapitalisation programme will strengthen underwriting capacity, boost investor confidence, and encourage mergers and acquisitions within the sector.

Moreover, it will position Nigerian insurers for regional competition under the African Continental Free Trade Area (AfCFTA), opening access to a market of over 1.3 billion people.

“This recapitalisation exercise marks the beginning of a new era for Nigeria’s insurance sector, one that prioritises resilience, competitiveness, and continental leadership,” Omesehin stated.

With the oversight of the four audit firms, the regulator aims to ensure that Nigeria’s insurance sector not only meets compliance requirements but also emerges stronger, more transparent, and ready to compete on a continental scale.

ENDS