Minister defends insurers’ recapitalisation
The Minister of State for Finance, Dr Doris Uzoka-Anite, yesterday said the ongoing recapitalisation exercise in the insurance industry is aimed at strengthening the financial stability and competitiveness of the sector.
This is just as the Commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, hinted that insurance firms have submitted their recapitalisation plans as at the September 30 deadline.
They spoke on Wednesday at the 2025 Insurance Directors’ Conference in Lagos, with the theme: “Navigating the New Insurance Landscape: Strategies for NIIRA 2025 Compliance and Growth.”
The two-day conference organised by NAICOM in collaboration with the College of Insurance and Financial Management (CIFM) attracted key players and stakeholders in the industry.
Daily Trust reports that Insurance companies had been given twelve calendar months ending July 2026 to comply with the new minimum capital requirement prescribed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The directive confirmed in a circular dated August 13, 2025 sent to all Insurance and Reinsurance Companies in Nigeria explained that the recapitalisation exercise had commenced from July 31, 2025 date of enactment of the Act.
Speaking at the conference, the Minister said like the banking sector, the insurance industry needs to go through serial recapitalisation exercises to strengthen its operations and boost investors’ confidence.
The Minister also hinted that there would be multiple recapitalisation exercises “until we get to where we’re going.”
Uzoka-Anite said, “Since 2004, the banking industry has gone through multiple recapitalisation exercises and today we have the strongest banking industry or banking sector in the whole of sub-Saharan Africa.
“And this is the same vision we have for the insurance sector. We believe that recapitalisation strengthens your ability to take greater risks, your risk management frameworks, improve and strengthen your operations. And of course, it engenders that trust that we need to make insurance an industry that can compete effectively with any banking sector in the world.”
She challenged Directors on integrity, professionalism and to collectively push and champion a stronger industry.
In his remarks, the Commissioner for Insurance said the regulator’s strategic focus on NIIRA is to reform, rebuild and recapitalise.
Omosehin said NAICOM had set up a committee to oversee the entire process of recapitalisation including a comprehensive roadmap, issuing guidelines and circulars recommending the appropriate minimum capital, requirement, composition, and identifying regulatory incentives that are necessary.
“In terms of status, I can confirm that institutions have actually submitted their capitalisation plans as at 30th September deadline. Reviews have been completed and the commission will commence official communication to each company indicating the outcome of the review of progress report and also guidance and maintain open communication with operators to ensure smooth implementation the exercise,” he said.
He said NAICON has embarked on interagency collaboration in order to meet the deadline and ensure a transparent process.
“Our ambition goes beyond regulation, we envisioned an insurance sector that contributes meaningfully to national development, from infrastructure to financing to climate resilience, true responsible investment, and targeted products, insurance can help to manage fiscal exposures, stabilise communities, and attract long-term capital,” Omosehin said.
He reiterated that the enactment of NIIRA 2025 marked a pivotal moment and “a comprehensive blueprint to reposition the insurance sector as a key driver of economic growth and social protection.”
One of the speakers, Dr Biodun Adedipe, said, “Experiences of past recapitalization in the financial services sector recommend not to wait till last quarter to deadline.”
