The National Insurance Commission (NAICOM) says 18 insurance companies have indicated their readiness to undergo capital verification, a key requirement in the ongoing recapitalisation exercise for the Nigerian insurance sector.
Speaking at the EY Insurance Summit 2025, NAICOM’s Chief Executive Officer, Olusegun Omosehin, described the industry’s response in the recapitalisation process as encouraging.
“Let me say that the industry’s response has been encouraging, with a very significant number of insurers who have indicated their readiness for capital verification. As we speak, we have about 18 companies that have indicated their readiness for capital verification,” Omosehin said.
Partnership with global audit firms
Omosehin, represented by NAICOM’s Deputy Commissioner (Technical), Dr. Usman Jankara, explained that the Commission has established a capital verification framework to ensure transparency and credibility.
“We’ve also put in place a capital verification framework, which is aimed at guaranteeing the integrity of the process. To this end, we are partnering with the Big Four audit firms, including EY, for independent verification of compliance with the minimum capital that is required,” he stated.
He added that the collaboration with international audit firms is expected to boost investor confidence and reinforce the credibility of the recapitalisation programme.
Timeline for compliance
NAICOM has outlined a clear roadmap for insurance firms to meet recapitalisation requirements:
- September 30, 2025: Deadline for submission of recapitalisation plans.
- November 2025 – June 2026: Period for capital verification exercises.
- July 30, 2026: Final compliance deadline.
Only firms that meet the minimum capital requirements by the deadline will retain their operating licences.
Collaboration to strengthen insurance industry
At the summit, Ben Afudego, Partner and Consulting Leader West Africa at EY, emphasized the importance of collective action by stakeholders to strengthen the industry.
“The summit became important for stakeholders to discuss what we can do together collectively to push the agenda, to shape the future of insurance confidently, such that we can see the growth that is expected of the sector, and that this can be the catalyst that will actually contribute to our country,” Afudego said.
The recapitalisation programme, backed by NAICOM’s verification framework and global audit partnerships, is expected to enhance solvency positions, attract investment, and position the Nigerian insurance industry for sustainable growth.
What you should know
In August, NAICOM increased the minimum capital requirements for insurance companies.
- Under the new framework, non-life insurers must raise their capital from N3 billion to N15 billion, life insurers from N2 billion to N10 billion, and reinsurers from N10 billion to N35 billion.
- The legislation is designed to enhance the sector’s risk-bearing capacity, improve claims settlement, and boost investor confidence.
