Federal Government Sets 12-Month Deadline For Insurance Operators To Recapitalize—Time’s Running Out!

Following the earlier assent to the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Ahmed Tinubu, insurance companies across the country have been given a 12-month deadline to recapitalise, according to iReporter Online.

The new legislation raises capital thresholds significantly: Life insurance firms must increase their capital from N2 billion to N10 billion, non-life insurance from N3 billion to N15 billion, and reinsurance companies from N10 billion to N35 billion — representing about a 500% capital increase, according to iReporter Online.

The NIIRA 2025 Capital Requirements (Part IV, Subsection 6), cited by iReporter Online, states that insurers registered before the Act’s commencement must comply within 12 months.

This effectively sets the deadline for recapitalisation at the end of July 2026 unless the National Insurance Commission (NAICOM) extends or waives it.

In response, NAICOM established a 2025 Recapitalisation Committee chaired by the Director of Supervision, Oluwatoyin Charles, to oversee the implementation of the recapitalisation programme.

The committee’s role includes ensuring compliance, promoting transparency, and developing guidelines and a roadmap for the insurance sector’s recapitalisation.

Olusegun Ayo Omosehin, the Commissioner for Insurance, stressed the importance of recapitalisation for stabilising the industry and contributing to Nigeria’s $1 trillion economy goal at the committee’s inauguration in Abuja.

He urged the 11-member committee to perform their duties with professionalism and commitment.

The Act also threatens to cancel the registration of any insurer or reinsurer that fails to meet the new capital requirements, with a 30-day grace period following the deadline, after which a list of compliant insurers will be published.

Industry leaders like Kunle Ahmed, Chairman of the Nigerian Insurers Association (NIA) and CEO of AXA Mansard Insurance Plc, praised the Act as pivotal legislation for transforming the insurance sector.

He pledged the NIA’s full support for the Act’s successful implementation through advocacy, capacity-building, and regulatory partnership.

Meanwhile, Dr. Jeff Duru, CEO of Universal Insurance Plc, said the law will encourage mergers and acquisitions to strengthen companies financially and attract foreign investors, particularly in sectors such as oil and gas, maritime, and aviation.

He also anticipates that companies will soon seek to raise funds publicly to meet the recapitalisation deadline.

Prince Babatunde Oguntade, President of the Nigerian Council of Registered Insurance Brokers (NCRIB), expressed optimism that the Act will not only enhance capital but also improve professionalism and ethical standards between brokers and underwriters, while sanctioning fraudulent actors.

This comprehensive approach, according to iReporter Online, promises to boost Nigeria’s insurance sector competitiveness locally and globally.

”IREPORTER REPORTS”