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The National Insurance Commission (NAICOM) has ruled out any extension of the ongoing insurance industry recapitalisation deadline, stressing that the timeline is clearly set out in law and cannot be altered administratively.
NAICOM’s Deputy Commissioner for Insurance (Technical), Dr Usman Jankara, made this position clear while speaking at a seminar for insurance journalists in Abuja on Tuesday. Representing the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, Jankara said the July 30, 2026 deadline remains sacrosanct.
“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law,” he said during a question-and-answer session.
According to him, any attempt to shift the deadline would require an amendment to the Nigerian Insurance Industry Reform Act (NIRA) 2025 and fresh presidential assent, a process the commission is not prepared to pursue.
“Once it is the law, nobody has the power to extend what the law has indicated as a deadline. To do that, you would need to return to the National Assembly, amend the relevant section, and obtain presidential assent. It is not a journey we are willing to embark on,” Jankara added.
He maintained that the timeline provided under NIRA is realistic and achievable for serious operators within the sector.
“We believe the deadline clearly highlighted by NIRA is doable and reasonable, and it is something committed players in the insurance industry can meet within the stipulated time frame,” he said.
Jankara expressed confidence that the recapitalisation exercise would ultimately strengthen the industry, noting that Nigerians would benefit from better-capitalised and more resilient insurance firms.
“By the end of the NIRA deadline on July 30, 2026, we will be presenting to Nigerians insurance companies that are stronger, better managed, and financially capable of meeting their obligations to policyholders and the economy,” he said.
Earlier, in his welcome remarks at the seminar, Jankara apologised for the absence of the NAICOM Commissioner and said the engagement was aimed at strengthening trust and collaboration between the regulator and the media.
“This gathering is not just an event; it is a strategic platform to deepen engagement and trust between NAICOM and the media, who play a critical role in shaping public perception of the insurance industry,” he said.
He outlined the objectives of the session to include improved collaboration, accurate reporting, and greater visibility for regulatory reforms, stressing that the media is central to improving public understanding and uptake of insurance.
Jankara said NAICOM’s current leadership has pursued reforms that balance prudential regulation with innovation. These include risk-based supervision focused on high-risk institutions, stronger market conduct rules, faster claims settlement, and a zero-tolerance approach to unresolved complaints and claims.
He added that the commission is also promoting inclusive growth through microinsurance, Takaful, InsurTech, and MSME-focused products, while encouraging innovation through a dedicated technology directorate, an innovation hub, and a regulatory sandbox covering areas such as embedded insurance and usage-based pricing.
According to him, NAICOM is working closely with the Nigeria Police Force to enforce compulsory third-party motor insurance and strengthen system-wide compliance, helping to shift public perception of insurance from a misunderstood product to one that is gradually gaining trust.
On recapitalisation, Jankara described the exercise as a fundamental reset for the industry.
“The ongoing recapitalisation is more than a regulatory milestone; it is a bold transformation that will redefine the Nigerian insurance industry for global relevance,” he said.
He explained that NAICOM is introducing a risk-based capital framework and engaging the Big Four audit firms for independent verification of insurers’ capital positions, in line with global best practices.
“This approach is designed to guarantee confidence, fairness, and trust in the process, while supporting the Federal Government’s aspiration of building a $1tn economy,” he added.
Jankara described the Nigerian Insurance Industry Reform Act 2025 as a modern and comprehensive framework that strengthens supervision, promotes innovation, and enhances consumer protection through clearer claims timelines, stiffer penalties, and the establishment of an Insurance Policyholders’ Protection Fund.
“NIRA is not just a law; it is a blueprint for a stronger, more inclusive insurance industry,” he said.
He added that NAICOM would continue to prioritise consumer protection, deepen insurance penetration, strengthen supervisory capacity, expand data and analytical capabilities, and promote sustainability and innovation across the sector.
The Nigerian Insurance Industry Reform Act 2025, signed into law in August 2025, replaced outdated insurance legislation, significantly increased minimum capital requirements, introduced a risk-based capital regime, and strengthened market conduct and policyholder protection across the industry.
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