By Taiye Olayemi
The National Insurance Commission (NAICOM) says Nigerian insurers have demonstrated readiness to meet the recapitalisation requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, disclosed this while speaking with the News Agency of Nigeria (NAN) in Lagos on Friday.
NAN reports that the final deadline for insurance recapitalisation in Nigeria is July 2026, which is a 12-month window from the commencement of the reform Act.
Omosehin said the new Act, signed by President Bola Tinubu earlier this year, was designed to strengthen the financial capacity of insurance institutions.
He said that it would also ensure that the institutions could effectively manage large-scale risks, including those posed by climate change.
The commissioner disclosed that NAICOM had already received recapitalisation plans from across the industry.
He expressed satisfaction with the level of compliance and enthusiasm among operators.
Omosehin said: “One of the major objectives of NIIRA 2025 is to create bigger and better-capitalised institutions that can stand the test of time.
“A deadline has been set for companies to recapitalise, and we are confident that most of them are well prepared to meet this requirement.
“We have received recapitalisation plans from many institutions, and we are quite impressed with the responses.
“In addition, there has been growing interest from foreign investors who are eager to invest in the Nigerian insurance sector.”
According to him, the positive responses from both local and foreign players indicate that the insurance industry is positioning itself for a stronger and more sustainable future.
“These are clear signs that the Nigerian insurance sector is preparing for greater times ahead and is ready to take on emerging challenges, including those caused by climate change,” he said.
The commissioner explained that proper capitalisation would enable Nigerian insurance firms to collaborate regionally and pool resources to manage high-impact risks more effectively.
“When institutions are adequately capitalised, they can align with others across the continent to share and mitigate risks, especially those related to climate and environmental challenges,” he said.
Omosehin assured that NAICOM was closely monitoring the performance of insurance companies to ensure prompt settlement of claims and adherence to financial obligations.
He urged the media to continue highlighting the progress made under NIIRA 2025, adding that the reform marked a new era for Nigeria’s insurance sector.
“Claims are being paid as and at when due, and we are pleased with the level of compliance.
“Our role as regulators is to ensure that insurers remain reliable and that policyholders’ interests are always protected.
“Nigeria is making steady progress, the recapitalisation exercise is not just about compliance, it’s about building stronger, more resilient institutions that can support national development and withstand future economic shocks,” the NAICOM boss stressed. (NAN) (www.nannews.ng)
Edited by Christiana Fadare
