Insurance coverage recapitalisation deadline mounted by regulation, NAICOM tells operators
The Nationwide Insurance coverage Fee has reaffirmed that the continued recapitalisation deadline for insurance coverage firms is not going to be prolonged, stressing that the timeline is mounted by regulation and can’t be altered.
The place was made clear by NAICOM’s Deputy Commissioner for Insurance coverage (Technical), Usman Jankara, who represented the Commissioner for Insurance coverage and Chief Govt Officer, Olusegun Omosehin, at a seminar for insurance coverage journalists held in Abuja on Tuesday.
Responding to questions through the session, Jankara stated, “I wish to state unequivocally that the recapitalisation deadline is not going to be prolonged. The essential cause is that this: it’s the regulation.”
He defined that altering the deadline would require a full legislative course of, together with amendments by the Nationwide Meeting and presidential assent.
“As soon as it’s the regulation, no one has the facility to increase what the regulation had indicated as a deadline. If you could do this, you would wish to return to the Nationwide Meeting, get that part amended, and get Mr President’s assent. It isn’t a journey we’re prepared to embark on,” he added.
In keeping with him, the deadline stipulated within the Nigerian Insurance coverage Trade Reform Act 2025 stays July 30, 2026, noting that operators who’re critical concerning the enterprise ought to be capable to comply inside the given timeframe.
“We imagine that the deadline as clearly highlighted by NIRA is doable, it’s affordable, and it’s one thing critical gamers inside the insurance coverage sector will be capable to meet inside that timeframe,” he stated.
Jankara expressed optimism that the recapitalisation train would strengthen the business and enhance its capability to satisfy obligations to policyholders.
“By the tip of the deadline offered by NIRA, that’s July 30, 2026, we’ll be popping out to Nigerians with new insurance coverage firms which have met the requirement, which might be stronger, which might be extra well-managed, and which have the {financial} muscle tissue to satisfy their obligations to Nigeria,” he added.
Earlier in his remarks, Jankara apologised for the absence of the Commissioner for Insurance coverage and stated the seminar was organised to deepen engagement and belief between NAICOM and the media.
“Let me begin by saying that this gathering isn’t just an occasion; it’s a strategic platform to strengthen engagement and belief between the Nationwide Insurance coverage Fee and media professionals who play a really essential function in shaping public notion of the Nigerian insurance coverage business,” he stated.
He famous that the aims of the engagement included collaboration with journalists, correct reporting, and highlighting ongoing reforms, including that the media performs a central function in enhancing understanding and uptake of insurance coverage merchandise.
Jankara stated NAICOM’s present management had pursued reforms that steadiness prudential oversight with innovation, together with risk-based supervision centered on high-risk establishments, improved market conduct, quicker claims settlement, and a “zero tolerance for non-settlement of complaints or claims.”
He added that the fee was selling inclusive progress by means of microinsurance, takaful, insurtech and MSME-focused merchandise, whereas encouraging innovation by means of a know-how directorate, innovation hub and regulatory sandbox masking concepts corresponding to embedded insurance coverage and usage-based pricing.
In keeping with him, NAICOM can be collaborating with the Nigeria Police Pressure to implement obligatory third-party motor insurance coverage and enhance systemic resilience, noting that these efforts have helped shift public notion of insurance coverage from a misunderstood product to 1 that’s “step by step being trusted.”
On the recapitalisation train itself, Jankara described it as a basic reset for the sector.
“The continuing recapitalisation train within the Nigerian insurance coverage business is greater than only a regulatory milestone. It’s a daring transformation that may redefine the Nigerian insurance coverage business for world relevance,” he stated.
He defined that the fee is introducing a risk-based capital framework and fascinating the Large 4 auditing corporations for impartial capital verification.
“This method is to make sure and assure confidence, equity and belief within the course of, reinforcing the business’s dedication to world greatest practices,” he stated, including that the reforms align with the Federal Authorities’s objective of constructing a $1tn economic system.
Jankara additional described the Nigerian Insurance coverage Trade Reform Act 2025 as a contemporary framework designed to strengthen supervision, innovation and shopper safety.
“NIRA is subsequently not only a regulation; it’s a blueprint for a stronger, extra inclusive insurance coverage business,” he stated.
Trying forward, he stated NAICOM would intensify shopper safety, strengthen supervision, increase information and analytical capability, deepen insurance coverage penetration, and promote sustainability and innovation.
The Nigerian Insurance coverage Trade Reform Act 2025, signed into regulation in August 2025, changed outdated insurance coverage laws and considerably raised minimal capital necessities for insurers whereas introducing a risk-based capital regime to make sure corporations maintain capital aligned with their danger publicity.