The National Insurance Commission (NAICOM) has firmly ruled out any extension for the ongoing insurance recapitalisation exercise, declaring that the July 31, 2026 deadline remains non-negotiable.
Speaking at a high-level media briefing in Lagos, the Commissioner for Insurance, Olusegun Omosehin, expressed concern over the slow pace of compliance among several insurance firms despite the fast-approaching deadline.
“The 31 July deadline is sacrosanct,” Omosehin stated, stressing that the timeline is backed by law under the Nigeria Insurance Industry Reform Act 2025. He explained that the Commission does not have the authority to alter a date established by an Act of the National Assembly.
“We would not be drawn into a last-minute rush or entertain pleas for extensions,” he cautioned, adding that any adjustment would require legislative amendment and presidential assent—an option the Commission is not considering.
According to him, while about 20 insurance companies have begun their capital verification process with major auditing firms, overall industry response remains below expectations.
Omosehin noted that the recapitalisation exercise is aimed at building a stronger and more resilient insurance sector capable of supporting Nigeria’s ambition of becoming a $1 trillion economy. He emphasised that the focus goes beyond raising capital to ensuring firms can underwrite large and complex risks effectively.
“Capital alone is not the goal; it is about the capability to underwrite large risks,” he said.
The Commissioner also advised weaker firms to consider mergers and acquisitions early, rather than waiting until the last minute. He warned against “emergency marriages,” noting that rushed deals often result in unresolved liabilities and integration challenges after consolidation.
He further disclosed that the Commission is currently conducting a comprehensive assessment of all operating insurance firms, with plans to make the findings public in due course.
To ensure transparency and credibility in the process, Omosehin reiterated that all funds raised for recapitalisation must be deposited in designated escrow accounts.
The Commission maintained that strict adherence to the deadline is essential to safeguarding policyholders and strengthening confidence in Nigeria’s insurance industry.
