Nigeria: NAICOM Sets Up Committee to Drive Insurance Industry Recapitalisation

The National Insurance Commission (NAICOM) has inaugurated an 11-member committee to oversee the insurance sector’s recapitalisation programme, following President Bola Tinubu’s recent assent to the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The committee, chaired by Mrs. Oluwatoyin Charles, NAICOM’s Director of Supervision, was unveiled on Tuesday in Abuja. Its mandate includes enforcing compliance with revised capital requirements, ensuring transparency in capital inflows, and safeguarding integrity throughout the process.

During the inauguration, Commissioner for Insurance, Mr. Olusegun Omosehin, stressed that recapitalisation is essential to stabilising the industry and supporting Nigeria’s goal of a $1 trillion economy. He urged members to carry out their duties with professionalism, diligence, and a commitment to the sector’s long-term growth.

Terms of reference for the committee include:

• Developing a detailed recapitalisation roadmap for NAICOM and the industry.
• Drafting guidelines and circulars on the exercise.
• Recommending the composition of minimum capital requirements.
• Identifying potential incentives and concessions from other regulators.

The committee will provide monthly progress reports to NAICOM’s management and quarterly updates to the Governing Board and stakeholders. The regulator expressed confidence in the team’s ability to shape a stronger, more resilient insurance sector.

Signed into law last week, NIIRA 2025 repeals outdated legislation and consolidates regulation under a modern framework. Key provisions include higher capital thresholds to ensure operator solvency, stricter enforcement of compulsory insurance, market digitisation for broader access, faster claims settlement, creation of policyholder protection funds for insolvency cases, and greater participation in regional schemes such as the ECOWAS Brown Card System.

NAICOM said successful implementation of the recapitalisation drive will be critical to securing industry stability and boosting public confidence in Nigeria’s insurance market.