Nigeria’s insurance industry has recorded a major increase in financial strength after a recapitalisation programme raised the sector’s total capital base to N1.079 trillion, according to the National Insurance Commission (NAICOM).
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, disclosed the figure during a media engagement in Lagos on Friday.
He said the successful completion of the exercise demonstrated growing confidence among investors and stakeholders in Nigeria’s insurance market.
50 Insurance Firms Complete Recapitalisation
Omosehin said 48 insurance companies and two reinsurance firms successfully met the new capital requirements and received renewed operating licences.
According to him, the achievement represented an important milestone for the sector and showed that operators were capable of strengthening their businesses under the new regulatory framework.
“The recapitalisation produced N1.079 trillion total capital,” he said.
He added that the participation of 50 companies reflected increased confidence in the future of Nigeria’s insurance industry.
Exercise Was Not Designed to Eliminate Companies
The NAICOM boss explained that the recapitalisation programme was not introduced to force companies out of business.
He said operators were given opportunities to raise additional funds, merge with stronger institutions or establish partnerships where necessary.
Omosehin stressed that the objective was to build a stronger insurance sector capable of protecting policyholders and supporting economic growth.
He said the commission provided clear guidelines, deadlines and regulatory procedures throughout the process.
NAICOM Defends Transparency of Process
The commissioner described the recapitalisation exercise as one of the most detailed regulatory processes carried out by NAICOM.
He explained that operators went through multiple stages of evaluation, including: Internal self-assessment, NAICOM regulatory review., independent verification, final approval by the commission’s governing board.
He said major audit firms, including PricewaterhouseCoopers, KPMG, Deloitte and Ernst & Young, participated in verifying the capital raised by operators.
Funds Verified Through Central Bank Escrow Accounts
Omosehin said companies were required to move newly raised capital into escrow accounts managed through the Central Bank of Nigeria for verification.
He explained that the funds remained the property of the companies but were temporarily placed under the arrangement to confirm the legitimacy and source of the capital.
According to him, the process helped NAICOM verify compliance with financial regulations, including anti-money laundering and counter-terrorism financing requirements.
He said operators could not rely only on investment documents but had to provide evidence that funds were genuinely available.
NAICOM Targets Wider Insurance Coverage
Following the completion of recapitalisation, Omosehin said the commission would now focus on expanding insurance penetration across Nigeria.
He identified key priorities including: Improving access to insurance products., increasing financial inclusion, supporting digital insurance solutions, trengthening claims settlement, expanding distribution channels.
He said NAICOM would continue supporting insurance technology companies as part of efforts to modernise the industry.
Risk-Based Regulation to Become More Important
The commissioner said risk-based supervision would become a major focus in the post-recapitalisation period.
He explained that stronger capital positions would allow insurance companies to take on larger risks while maintaining financial stability.
Omosehin also rejected claims of wrongdoing during the recapitalisation process, describing allegations of fraud as attempts to undermine the regulatory exercise.
Background to Nigeria Insurance Reform
The recapitalisation programme followed the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law by President Bola Ahmed Tinubu on July 31, 2025.
Under the new framework, NAICOM established an 11-member Recapitalisation Committee to oversee a 12-month transition period.
The reform was designed to improve the financial capacity of insurance companies, strengthen consumer protection and position Nigeria’s insurance market for greater investment.
