Recapitalisation: July 30 Deadline Non-Negotiable, NAICOM Tells Insurers

The National Insurance Commission (NAICOM) has reaffirmed that the ongoing recapitalisation exercise for insurance companies across Nigeria must be completed by the legally stipulated deadline of July 30, 2026, warning that the timeline is fixed by law and cannot be extended.

Speaking at a seminar for insurance journalists in Abuja, Dr. Usman Jankara, Deputy Commissioner for Insurance (Technical), representing NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, emphasized that altering the deadline would require a full legislative process, including amendments by the National Assembly and presidential assent.

“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law,” Jankara said, adding that serious players in the sector should be able to comply within the timeframe.

The exercise, anchored in the Nigerian Insurance Industry Reform Act (NIRA) 2025, aims to strengthen the industry by ensuring insurance companies have sufficient capital to meet obligations to policyholders.

NAICOM has engaged independent verification through the Big Four auditing firms and introduced a risk-based capital framework to enhance transparency and confidence.

Jankara described the recapitalisation as a “fundamental reset” for the Nigerian insurance industry, adding that it will create stronger, better-managed companies capable of competing globally.

He also highlighted the role of NAICOM in promoting reforms that balance prudential oversight with innovation. These include microinsurance, takaful, insurtech solutions, and MSME-focused products, as well as measures to enforce compulsory third-party motor insurance in collaboration with the Nigeria Police Force.

“By the end of the deadline provided by NIRA, we’ll be coming out to Nigerians with insurance companies that are stronger, more well-managed, and capable of meeting their obligations,” Jankara said.

NAICOM’s engagement with the media, he noted, is part of a broader strategy to improve public perception of insurance, deepen penetration, and foster trust in the sector.

The Commission stressed that the recapitalisation deadline is not negotiable and urged insurance operators to plan accordingly. Failure to comply could result in regulatory action, including the revocation of licenses.

The Nigerian Insurance Industry Reform Act 2025, signed into law in August 2025, replaced outdated legislation, significantly raised minimum capital requirements, and introduced a modern risk-based capital regime aligned with the risk exposure of insurers.

NAICOM reaffirmed its commitment to consumer protection, innovation, and sustainable growth as it oversees the ongoing transformation of the insurance sector.