NAICOM: Insurers Show Strong Readiness for 2025 Recapitalisation Drive
Nigeria’s insurance sector is entering a new era of financial strength and institutional confidence as operators across the industry demonstrate robust readiness to meet the recapitalisation requirements under the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, stated this in Lagos while affirming that most insurers have submitted credible recapitalisation plans and are well positioned to meet the July 2026 compliance deadline.
Insurance Sector Positions for a Stronger, More Resilient Future
According to Omosehin, the NIIRA 2025, signed earlier this year by President Bola Ahmed Tinubu, represents the most transformative policy shift in Nigeria’s insurance landscape in two decades.
The law aims to strengthen the financial base, governance, and operational capacity of insurance companies—ensuring they can efficiently manage large-scale and emerging risks, including those linked to climate change, infrastructure expansion, and macroeconomic volatility.
“One of the major objectives of NIIRA 2025 is to create bigger, better-capitalised institutions that can stand the test of time,” Omosehin said.
“We are impressed by the level of compliance, and we have already received recapitalisation plans from a majority of operators.”
The Commissioner added that the strong responses from both local players and foreign investors signal a renewed confidence in the Nigerian insurance market—a sector long viewed as undercapitalised relative to the size and complexity of the Nigerian economy.
Investor Confidence and Foreign Interest on the Rise
Omosehin disclosed that NAICOM has received notable expressions of interest from foreign investors keen to participate in Nigeria’s insurance transformation, either through strategic equity stakes or technical partnerships.
The renewed investor interest, he said, stems from improved regulatory clarity, policy stability, and the potential for long-term returns as the economy diversifies and deepens its risk-management architecture.
“These are clear signs that the Nigerian insurance sector is preparing for greater times ahead. The level of enthusiasm from within and outside the country reflects a shared belief in the growth potential of the market,” Omosehin explained.
Industry analysts have described the recapitalisation move as both a consolidation opportunity and a growth catalyst, enabling insurers to scale, innovate, and compete effectively with their continental peers in Ghana, Kenya, Morocco, and South Africa.
Stronger Capital, Better Risk Management
Under NIIRA 2025, insurance firms are expected to increase their paid-up capital within 12 months of the reform’s commencement—positioning them to absorb shocks, finance larger underwriting projects, and meet international solvency benchmarks.
Omosehin emphasised that adequate capitalisation will enable Nigerian insurance companies to participate in regional risk-pooling arrangements and to underwrite high-impact sectors such as energy, aviation, marine, and climate resilience projects.
“When institutions are adequately capitalised, they can collaborate across borders to manage risks more effectively,” he noted.
“We envision Nigerian insurers becoming key partners in Africa’s climate risk management ecosystem.”
The Commissioner reaffirmed that NAICOM will continue to provide guidance, monitor compliance, and ensure prompt claims settlement—key to sustaining consumer confidence and policyholder trust.
Claims Performance and Regulatory Oversight Improving
Omosehin further revealed that claim settlements across the insurance industry have significantly improved, attributing the progress to stricter supervision and reforms targeting transparency, digitalisation, and policyholder protection.
He said NAICOM is closely tracking the liquidity and solvency positions of insurers to ensure that obligations are met promptly and that operators maintain healthy balance sheets.
“Claims are being paid as and when due, and we are pleased with the current level of compliance,” Omosehin said.
“Recapitalisation is not just about compliance—it is about building stronger, more reliable institutions capable of supporting national development and weathering future economic disruptions.”
He urged the media to continue spotlighting the gains of the reform process, describing NIIRA 2025 as a blueprint for sustainable growth, corporate discipline, and global competitiveness within the Nigerian insurance market.
A New Dawn for Insurance in Nigeria
Industry watchers agree that the NIIRA 2025 reform represents a turning point for Nigeria’s insurance industry, shifting it from fragmentation and underperformance to consolidation and global relevance.
With stronger capital buffers, improved risk frameworks, and investor-driven expansion, the sector is expected to unlock new opportunities in microinsurance, health insurance, agriculture insurance, and digital underwriting—all key growth areas under the country’s economic diversification agenda.
As the July 2026 recapitalisation deadline approaches, NAICOM’s proactive oversight and the industry’s collective readiness signal that Nigeria’s insurance sector is finally entering its age of resilience, credibility, and scale.
