By Taiye Olayemi
The National Insurance Commission (NAICOM) says the recently concluded recapitalisation exercise raised the Nigerian insurance industry’s total capital to N1.079 trillion.
Mr Olusegun Omosehin, Commissioner for Insurance and Chief Executive Officer of NAICOM, disclosed this during a media interactive session on developments in the insurance sector held in Lagos on Friday.
The commissioner said 48 insurance and two reinsurance entities successfully crossed the recapitalisation threshold and had been re-licensed.
He described the outcome as an indication of renewed confidence in the Nigerian insurance market.
“The recapitalisation produced N1.079trn total capital.
“Having 50 entities cross that line, for me, I think we’ll give ourselves some kudos.
“It also speaks to the renewed confidence of Nigerian investors in the insurance space,” he said.
Omosehin said the goal of recapitalisation was not to force companies out, but to help them raise funds, merge, or partner with others.
“Let me state unequivocally that the capital exercise was never intended to eliminate any operator from the market.
“That wasn’t the intention. We announced at the beginning that no operator will be allowed to go down,” he said.
Omosehin explained that the commission provided clear guidelines, timelines and regulatory requirements throughout the recapitalisation process.
He said NAICOM’s decisions were guided by the law, prudential principles and the long-term interest of the Nigerian insurance industry.
According to him, the interests of policyholders, investors and other stakeholders remained priorities throughout the exercise.
Speaking on the entire process, Omosehin said the recapitalisation was one of the most transparent exercises undertaken by the commission, involving four levels of assessment and verification.
He listed the stages as self-assessment by operators, NAICOM’s review, independent verification and final consideration by the governing board of the commission.
He said independent verification was conducted by major audit firms, including PricewaterhouseCoopers, KPMG, Deloitte as well as Ernst & Young.
According to him, the firms independently reviewed the capital raised by operators and conducted third-party confirmations before submitting their reports to NAICOM.
Omosehin said operators were also required to transfer raised capital into escrow accounts with the Central Bank of Nigeria (CBN) for proper verification.
He explained that while the funds remained the property of the operators, they were transferred from commercial banks to the CBN to verify their source and ensure compliance with anti-money laundering and counter-terrorism financing regulations.
“The account will be opened in your name. Your escrow account is your account. But rather than it being with a commercial bank, it moves to the Central Bank,” he said.
According to Omosehin, the arrangement enables the regulator to properly examine both the flow and origin of the funds to determine compliance with applicable requirements.
He said operators could not depend solely on investment notes or other documents to prove that capital had been genuinely raised.
The commissioner said NAICOM would continue to work with operators to ensure compliance with established regulatory requirements.
He said the Commission would now focus on deepening insurance penetration, expanding financial inclusion, and improving access to insurance nationwide.
He said NAICOM was also supporting digital innovation and the growth of insurance technology companies.
“We continue to see prospects in this area. Hence, you are aware we’ve licensed a few insurtechs, and there are still a few in the pipeline that we will be considering,” he said.
The commissioner said the commission would also expand insurance distribution channels and continue to prioritise prompt claims settlement.
He said risk-based supervision would also become a critical area of focus in the post-recapitalisation era.
He also dismissed allegations of fraud surrounding the recapitalisation exercise, describing some of the claims as attempts to discredit the commission and the exercise.
The News Agency of Nigeria (NAN) reports that the nationwide recapitalisation exercise began after President Bola Tinubu signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law on July 31, 2025.
Pursuant to Section 15 of the Act, NAICOM set up an 11-member Recapitalisation Committee to oversee the 12-month transition, which concluded on July 31. (NAN)
Edited by Folasade Adeniran