Insurance sector capital hits N1.08trn after recapitalisation

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Omosehin, has said Nigeria’s insurance industry now has a total capital base of N1.079 trillion following the completion of the sector’s recapitalisation exercise.

The Commissioner disclosed this during a media interactive session in Lagos, where he said 48 insurance companies and two reinsurance firms successfully met the new capital requirements and were re-licensed.

Omosehin pointed out that this development has strengthened investor confidence and positioned operators for a more sustainable expansion of the market, adding that the outcome represented a significant milestone for the industry, particularly as the exercise was designed to strengthen operators rather than force companies out of the market.

According to him, the recapitalisation produced N1.079 trillion 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.

“Operators were allowed to raise fresh capital, merge or enter into partnerships, with NAICOM maintaining that no company would be allowed to fail simply because of the recapitalisation exercise”, he said

The stronger capital position could improve the industry’s capacity to underwrite larger and more complex risks, support investment and provide greater financial protection to businesses and households. It could also strengthen insurers’ ability to participate in sectors such as infrastructure, energy, aviation, manufacturing and other areas where adequate risk cover is critical to attracting investment.

Omosehin said the recapitalisation process was conducted through four stages involving self-assessment by operators, regulatory review, independent verification and final consideration by NAICOM’s governing board.

He said major audit firms, including PricewaterhouseCoopers, KPMG, Deloitte and Ernst & Young, independently reviewed the capital raised by operators and conducted third-party confirmations before submitting their findings to the commission.

Operators were also required to transfer the capital raised into escrow accounts with the Central Bank of Nigeria for verification. Omosehin said the arrangement allowed the regulator to establish the source and movement of the funds and ensure compliance with anti-money laundering and counter-terrorism financing requirements.

He stressed that operators could not rely solely on investment notes or other documentation to establish that the required capital had genuinely been raised.

With the recapitalisation completed, NAICOM is shifting its attention to expanding insurance penetration, improving financial inclusion and increasing access to insurance across the country.

Omosehin said the commission would deepen digital distribution, support the growth of insurance technology companies and expand channels through which Nigerians can access insurance products.

“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 regulator will also continue to prioritise prompt claims settlement and strengthen risk-based supervision as the industry enters the post-recapitalisation phase.

The exercise followed the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law by President Bola Tinubu on July 31, 2025. Under Section 15 of the Act, NAICOM established an 11-member Recapitalisation Committee to oversee the 12-month transition, which ended on July 31.

For the wider economy, the success of the exercise will ultimately be measured by whether the additional capital translates into deeper insurance coverage, stronger claims-paying capacity, greater protection for businesses and households and a larger pool of long-term funds that can support Nigeria’s investment and economic growth.