NAICOM has confirmed strong readiness among insurers ahead of NIIRA 2025. Many operators have approved plans for raising capital, mergers, and restructuring as the regulator prepares to implement risk-based capital, new reinsurance regulations, and enhanced audit verification.

Nigeria’s insurance industry is entering a decisive new era as the National Insurance Commission (NAICOM) confirms strong readiness among insurers ahead of the full implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

At the EY Insurance Summit in Lagos, the Commissioner for Insurance, Olusegun Omosehin, announced that insurers have significantly stepped up preparation for capital verification and compliance—signaling a collective industry shift towards robust solvency, modernisation, and regulatory alignment.

Represented by Deputy Commissioner Usman Jankara, Omosehin revealed that several insurance boards across the country have approved capital-raising strategies, including:

• Fresh equity injections,
  
• Strategic mergers and acquisitions (M&A),
  
• Corporate restructuring,
  
• Operational optimisation to meet new capital thresholds.
  

These decisions, he said, reflect the industry’s broad acceptance that NIIRA 2025 is not merely a regulatory mandate but a strategic transformation opportunity.

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Industry Recapitalisation: NAICOM Completes Review of Submitted Plans

NAICOM confirmed it has completed the review of all recapitalisation plans submitted by operators, and has issued formal feedback to each institution—marking a major milestone in the preparatory process.

The Commission also released:

• Guidelines on Admissible Assets & Liabilities,
  
• Compliance Timelines for Minimum Capital Requirements,
  
• Updated Reinsurance Guidelines to enhance risk transfer discipline.
  

According to Omosehin, these frameworks aim to eliminate ambiguity, strengthen transparency, and ensure consistent regulatory execution across the insurance value chain.

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NIIRA 2025: Opportunities and Challenges for Insurers

While NAICOM expressed satisfaction with industry readiness, Omosehin acknowledged that insurers still face structural and macroeconomic headwinds, including:

• High inflation and rising claims costs,
  
• Foreign exchange volatility,
  
• M&A negotiation complexities,
  
• Limited local capacity in actuarial science and risk modelling.
  

Despite these hurdles, Omosehin reaffirmed NAICOM’s commitment to supporting innovation, strengthening regulatory clarity, and maintaining a risk-sensitive but business-friendly operational environment.

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NAICOM’s Roadmap: Technology, ESG, and Risk-Based Capital (RBC)

The Commissioner outlined the core pillars that will shape Nigeria’s insurance modernization under NIIRA 2025:

1. Digital Transformation

Improved adoption of InsurTech, automation, e-payment integration, AI-driven underwriting, and real-time claims processing.

2. ESG Integration

Embedding environmental, social, and governance practices in underwriting, investment decisions, and corporate governance.

3. Advanced Data Analytics

Using analytics to improve pricing, detect fraud, enhance customer experience, and refine regulatory oversight.

4. Strengthening Actuarial Capacity

With IFRS 17 now redefining valuation processes, NAICOM confirmed plans to engage a resident actuary to enhance regulatory analytics and improve market supervision.

5. Risk-Based Capital (RBC) Framework

NAICOM announced that the RBC toolkit is almost ready, and full rollout will commence once recapitalisation is completed. This will shift the industry from static capital rules to dynamic, risk-sensitive capital adequacy models.

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Audit Integrity: Big Four Firms Join the Verification Process

To guarantee credibility, NAICOM has partnered with Big Four audit firms for independent verification of insurers’ minimum capital compliance—strengthening transparency and building public trust in the reform process.

The Commission urged insurers to enhance reporting discipline, improve risk management structures, and deepen collaboration with auditors, actuaries, brokers, reinsurers, and technology partners.

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BRANDECONOMY INSIGHT

NIIRA 2025 is set to become the most consequential insurance reform in Nigeria since liberalisation. From BRANDECONOMY’s expert analysis, key structural shifts are underway:

1. Capital Strength Will Determine Market Relevance

Insurers unable to recapitalize or merge risk becoming uncompetitive in a more stringent, growth-oriented regulatory space.

2. Mergers Will Reshape the Industry Landscape

Nigeria is entering a consolidation cycle, similar to South Africa, Kenya, and India. Stronger, better-capitalized entities will emerge.

3. Technology Will Become the New Insurance Currency

Digital adoption will separate industry leaders from laggards—improving efficiency, customer engagement, and regulatory compliance.

4. Regulatory Trust Is the New Growth Driver

With Big Four audits, IFRS 17-aligned valuations, and RBC implementation, Nigeria is positioning its insurance market for investor confidence, foreign partnerships, and cross-border expansion.

5. NIIRA 2025 Is a Governance Revolution

Stronger capital = stronger claims-paying ability = stronger industry reputation.
This reform is ultimately about restoring trust—the most valuable currency in insurance.

The future of Nigeria’s insurance sector will belong to companies that treat NIIRA 2025 as a catalyst for competitiveness, not a compliance burden.

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