Insurance companies that successfully completed Nigeria’s latest recapitalisation exercise are expected to begin accessing their fresh capital by the end of September 2026.
The National Insurance Commission (NAICOM) announced that it would begin issuing permits to successful insurance companies to access funds raised during the exercise. The money has been held in escrow accounts with the Central Bank of Nigeria (CBN) while regulators verified the source and legitimacy of the capital.
According to the Commissioner for Insurance, Olusegun Ayo Omosehin, a total of about ₦1.07 trillion was raised and deposited by 24 insurance companies during the recapitalisation exercise.
The commissioner explained that the decision to keep the money in CBN escrow accounts was intended to allow regulators to properly verify the funds and ensure that the capital was legitimate rather than money brought into the sector temporarily for regulatory purposes.
The recapitalisation exercise was introduced to strengthen the financial position of Nigeria’s insurance industry and ensure that insurance companies have enough capital to take on larger risks.
NAICOM said the exercise has now been successfully concluded in line with the industry’s new Minimum Capital Requirements and the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The commission said the sector raised approximately ₦1.079 trillion in additional capital during the process.
Not all insurance companies were required to raise new funds. According to NAICOM, some operators already had capital above the new regulatory requirements and therefore did not need to raise additional money.
The new minimum requirements include ₦10 billion for life insurance companies, ₦15 billion for general business insurers and ₦35 billion for reinsurance companies.
The recapitalisation is expected to make Nigerian insurance companies financially stronger and better prepared to underwrite major risks.
This could be particularly important for large infrastructure projects, energy businesses, aviation, manufacturing and other sectors that require insurance coverage for high-value assets and operations.
BusinessDay reported that the fresh capital gives insurance operators a stronger financial base to underwrite larger risks and compete for major corporate and infrastructure businesses.
The exercise is also expected to improve the ability of Nigerian insurers to retain more risks within the country rather than transferring a large portion of major risks to foreign insurers.
For policyholders, a stronger insurance industry could also provide greater confidence that companies have the financial capacity to meet legitimate claims.
NAICOM has said the recapitalisation was not primarily designed to remove companies from the market. Instead, operators were given the opportunity to raise additional funds, merge with other companies or form strategic partnerships in order to meet the new requirements.
The commission’s verification process has therefore been an important part of the exercise. Regulators needed to establish that the funds being presented by insurance companies were genuine and available to support their businesses over the long term.
The stronger capital base is expected to support the Federal Government’s wider economic ambitions, including its target of building a $1 trillion Nigerian economy by 2030.
However, analysts say raising capital is only the beginning. Insurance companies will need to deploy the additional funds carefully, improve underwriting practices, strengthen corporate governance and provide better services to customers.
The sector has also recently faced questions and allegations surrounding the recapitalisation process. NAICOM has rejected allegations of a ₦100 billion fraud in the exercise, describing the claims as false and misleading. The regulator said it had provided information requested by the Economic and Financial Crimes Commission (EFCC) and maintained that requests for information should not be interpreted as evidence of wrongdoing.
With the release of the verified funds expected before the end of September, attention will now shift to how insurance companies use the new capital.
If properly deployed, the ₦1.07 trillion-plus capital injection could help strengthen Nigeria’s insurance industry, increase its capacity to support businesses and infrastructure and improve the sector’s contribution to economic growth.
