The Commissioner for Insurance, Olusegun Omesehin, has reiterated the Federal Government’s commitment to strengthening Nigeria’s insurance industry through a transparent and well-structured recapitalization programme.
He delivered this message in a goodwill address at the Continental Re CEOs Roundtable, where he was represented by Usman Jankara. Industry stakeholders gathered to engage on the theme, “Recapitalisation & Beyond: Rethinking Risk, Capacity & Collaboration for a Resilient Insurance Sector in Nigeria.”
At the event, the Commissioner commended Continental Re for convening discussions that align with the administration’s broader agenda to reposition the insurance landscape.
He noted that the sector is at a defining moment, regulatory reforms have yielded progress, yet penetration levels remain below one percent of GDP. He emphasized that recapitalization is not merely a regulatory directive but a strategic requirement for long-term stability.
Referring to the World Bank’s perspective on financial resilience, he emphasised that capital adequacy alone is insufficient, and that the ultimate goal is to create a sector capable of absorbing shocks and thriving in the face of uncertainty.
Under the Nigerian Insurance Industry Reform Act 2025 and guidelines issued by the National Insurance Commission, new Minimum Capital Requirements have been pegged at N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurance companies.
“We have also constituted an in-house Committee to drive the recapitalization exercise. We issued an MCR Circular followed by a Comprehensive Guidelines for MCR to provide regulatory,” he said.
He outlined the compliance schedule mandating companies to submit their recapitalization plans by 30 September 2025. Monthly progress reports are expected within ten working days after each month, while capital verification will run from November 2025 to June 2026.
The final compliance deadline is 30 July 2026, after which only companies that meet all requirements will receive renewed licences.
To maintain the integrity of the process, NAICOM has resolved to engage the Big Four auditing firms to oversee capital verification.
Their engagement, he continued, will ensure that only insurers with demonstrated financial resources are considered compliant.
The Commissioner further stated that the recapitalisation initiative will bolster underwriting capacity, improve investor confidence, and encourage mergers and acquisitions across the industry.
He added that the reform would position Nigerian insurers more competitively within the African Continental Free Trade Area.
He stated that AfCFTA provides tremendous prospects for local insurers, including access to a continental market of more than 1.3 billion people. Nigerian insurance companies with stronger balance sheets will be better positioned to engage in cross-border insurance, infrastructure coverage, and trade-related risks.
According to him, the recapitalisation programme signals the start of a new phase for the industry, one defined by resilience, competitiveness, and stronger continental relevance for Nigeria’s insurance sector.
